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HomeMy WebLinkAboutItem 4.05 Residential Rooftop Solar OFDU fyz STAFF REPORT CITY CLERK CITY COUNCIL File #440-50 DATE: August 18, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager (' ff� SUBJECT: Adoption of an Ordinance Establishing a Streamlined ermitting Process for Small Residential Rooftop Solar Systems (AB 2188) Prepared by Gregory A. Shreeve Sr., Chief Building Official and Roxanna Recinos-Serna, Plan Check Engineer EXECUTIVE SUMMARY: California Government Code Section 65850.5 (enacted by Assembly Bill 2188) requires that, on or before September 30, 2015, local governments adopt an ordinance that creates a streamlined permitting process for small rooftop solar system installations. FINANCIAL IMPACT: The fiscal impact of the ordinance should be minimal. The City will mostly likely see a small increase in expenditures in the printing of plan sets for electronically submitted applications. There is also a potential for an increase in postage costs, if the City mails plans and permits to the Applicant after the approval of an electronically submitted permit. This and any other increases could be offset with an electronic submittal surcharge or an increase in the amount of the permit fees. No action is requested at this time; Staff will review the costs during the next fee study and provide any recommendations for modifying the fees at that time. RECOMMENDATION: Staff recommends that the City Council waive the reading and adopt the Ordinance Adding Chapter 7.96 (Streamlined Permitting Process for Small residential Rooftop Solar Systems) to the Dublin Municipal Code and provide direction on permit subsidies. Submitted By Reviewed By Community Development Director Assistant City Manager DESCRIPTION: Government Code Section 65850.5 requires the City to adopt an ordinance creating an expedited, streamlined permitting process for small residential rooftop solar energy systems. Under the State requirement, small residential rooftop solar energy systems are defined as solar Page 1 of 2 ITEM NO. 4.5 energy systems that: (1) are no larger than 10 kilowatts alternating current in the case of photovoltaic or "PV" electric generating systems, or are no larger than 30 kilowatts thermal in the case of water heating systems; (2) conform to all applicable state fire, structural, electrical and other building codes adopted by the local authority; (3) are installed on a single-family or duplex-family dwelling; and (4) do not exceed the maximum legal building height as defined by the local authority. The proposed ordinance is intended to satisfy that requirement. The ordinance codifies the requirements of Section 65850.5(g)(1), such as accepting and approving applications electronically, directing the City's Chief Building Official to develop a checklist of all requirements with which small rooftop solar energy systems shall comply to be eligible for expedited review, and authorizing the Chief Building Official to administratively approve such applications. The Building & Safety Division is currently providing expedited review and has a current handout. Staff is working on the creation of the new checklists and plans required by the guidebook. In addition, Staff is developing procedures for acceptance of electronic submittals of permit application and related documents. On July 21, 2015, the City Council waived the reading and introduced the Ordinance adding Chapter 7.96 (Streamlined Permitting Process for Small Residential Rooftop Solar Systems) of the Dublin Municipal Code to establish an expedited permitting procedure for rooftop solar energy systems. Please refer to the July 21, 2015 City Council Staff Report for a complete discussion of this Ordinance (Attachment 1). The City Council is currently requesting to waive the second reading and adopt the Ordinance (Attachment 2). ATTACHMENTS: 1. City Council Staff Report dated July 21, 2015 (without attachments) 2. Ordinance of the City Council of the City of Dublin adding Chapter 7.96 to the Dublin Municipal Code Adopting a Streamlined Process for Small Residential Rooftop Solar Systems Page 2 of 2 or �` ;�8� STAFF REPORT CITY CLERK y CITY COUNCIL File #440-50 ..........�rrFO DATE: July 21, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Adoption of an Ordinance Establishing a Streamlined ermitting Process for Small Residential Rooftop Solar Systems (AB 2188) Prepared by Gregory A. Shreeve Sr., Chief Building Official and Roxanna Recinos-Serna, Plan Check Engineer EXECUTIVE SUMMARY: California Government Code Section 65850.5 (enacted by Assembly Bill 2188), requires that, on or before September 30, 2015, local governments adopt an ordinance that creates a streamlined permitting process for small rooftop solar system installations. FINANCIAL IMPACT: The fiscal impact of the ordinance should be minimal. The City will mostly likely see a small increase in expenditures in the printing of plan sets for electronically submitted applications. There is also a potential for an increase in postage costs, if the City mails plans and permits to the Applicant after the approval of an electronically submitted permit. This and any other increases could be offset with an electronic submittal surcharge or an increase in the amount of the permit fees. No action is requested at this time; Staff will review the costs during the next fee study and provide any recommendations for modifying the fees at that time. RECOMMENDATION: Staff recommends that the City Council waive the first reading and introduce an ORDINANCE adding Chapter 7.96 (Streamlined Permitting Process for Small residential Rooftop Solar Systems) to the Dublin Municipal Code and provide direction on permit subsidies. Submitted By Reviewed By Community Development Director Assistant City Manager DESCRIPTION: Page 1 of 3 ITEM NO. 4.11 Government Code Section 65850.5 requires the City to adopt an ordinance creating an expedited, streamlined permitting process for small residential rooftop solar energy systems. Under the State requirement, small residential rooftop solar energy systems are defined as solar energy systems that: (1) are no larger than 10 kilowatts alternating current in the case of photovoltaic or "PW electric generating systems, or are no larger than 30 kilowatts thermal in the case of water heating systems; (2) conform to all applicable state fire, structural, electrical and other building codes adopted by the local authority; (3) are installed on a single-family or duplex-family dwelling; and (4) do not exceed the maximum legal building height as defined by the local authority. The proposed ordinance is intended to satisfy that requirement. The ordinance codifies the requirements of Section 65850.5(g)(1), such as accepting and approving applications electronically, directing the City's Chief Building Official to develop a checklist of all requirements with which small rooftop solar energy systems shall comply to be eligible for expedited review, and authorizing the Chief Building Official to administratively approve such applications. The Building and Safety Division Staff already provides a process for expedited over-the- counter reviews of applications for small residential rooftop solar systems. Currently, Applicants may reference the Residential Photovoltaic Systems Plans Submittal Checklist, which is available on the Building Division's website. Provided all the submitted information is complete, Staff reviews the application and plans, and then issues the permit over-the-counter. The process for Staff to review the application and plans, and either approve the application and issue the permit or provide comments on the application, takes about 15 minutes. The City's quick review process exceeds the timing requirements set by the State for expediting these applications. After the installation of the system is complete, a single, final inspection is scheduled to verify the system has been installed according to the approved plans. The City already provides next day inspection services. Contractors can also contact the inspector the morning of the inspection to get an estimated time for the inspector's arrival. In fiscal year 2015, the City processed 286 small residential solar system permits. Approximately 98% of these permits were processed over-the-counter or on the same day. Solar systems for heating water in residential applications are far less common (nor are they particularly common in commercial and swimming pool applications). Over the last five fiscal years, the City has only issued four permits for solar water systems for single-family residences, all of which were reviewed and issued over-the-counter. Once this ordinance is fully implemented, the City will offer three methods to submit a residential solar permit application. Each method has a different processing time. • Option 1: If the Applicant uses the City's current checklist, review and processing of the permit application will remain over-the-counter. • Option 2: If the Applicant uses the checklist and plans contained in the California Solar Permitting Guidebook, the review will take one to three business days. • Option 3: If the Applicant does not use either option 1 or 2, the review will go through the normal plan check process, and review may take up to ten business days. Page 2 of 3 State law also mandates that the City accept some form of electronic submission of small residential rooftop solar permit applications. In order to satisfy this mandate, Staff is developing a method that will allow for the acceptance and review of such applications through email. An Applicant will be able to electronically transfer (via email) the permit application, plans and all required documentation to the City for processing. The Applicant will be notified when the permit is approved and will be notified how to pay for the permit. Staff is working on a process that will allow for payment of the fees through our on-line portal. Permit Costs: Currently, the City subsidizes all residential solar system permits. In 2006, the City Council set a maximum fee for solar permits at $250, without any adjustments. The approximate true cost to the City for a Solar Photovoltaic Permit is $342. This set amount currently results in a subsidy of$92 per permit. For Solar Pool Heating Permits, the City charges $100 while the true cost is approximately $156. In Fiscal Year 2014/2015, the City issued 286 photovoltaic permits and zero solar pool heating permits, for a total subsidy of $26,312. As part of the City Council's direction on long term fiscal sustainability, Staff will be evaluating this subsidy, as well as other subsidies provided for services and will make recommendations on which subsidies to discontinue in the coming months. The Building & Safety Division is currently providing expedited review and has a current handout. Staff is working on the creation of the new checklists and plans required by the guidebook. In addition, Staff is developing procedures for acceptance of electronic submittals of permit application and related documents. NOTICING REQUIREMENTS/PUBLIC OUTREACH: In advance of the City Council item, Staff held a Contractor roundtable meeting on June 29, 2015. Notices of that meeting were sent to the residential solar companies that have obtained permits over the last 12 months. Two solar companies attended and provided positive input on the current over the-counter-process. A notice of the meeting was mailed to the attendees of the contractor roundtable. ATTACHMENTS: 1. Ordinance of the City Council of the City of Dublin adding Chapter 7.96 to the Dublin Municipal Code Adopting a Streamlined Process for Small Residential Rooftop Solar Systems 2. Copy of AB 2188 as Chaptered Page 3 of 3 ORDINANCE NO. XX -15 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN *************** ADDING CHAPTER 7.96 TO THE DUBLIN MUNICIPAL CODE TO PROVIDE AN EXPEDITED, STREAMLINED PERMITTING PROCEDURE FOR SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEMS WHEREAS, the City Council recognizes the importance of"green technology"; and, WHEREAS, the City Council wishes to continue promoting green building and alternative energy measures; and WHEREAS, it is the policy of the State of California to promote and encourage the installation and use of solar energy systems by limiting obstacles to their use and by minimizing the permitting costs of such systems; and WHEREAS, California Government Code section 65850.5 requires that, on or before September 30, 2015, every city, county, or city and county shall adopt an ordinance that creates an expedited, streamlined permitting process for small residential rooftop solar energy systems. WHEREAS, the City Council seeks to implement Government Code section 65850.5 by creating an expedited, streamlined permitting process for small residential rooftop solar energy systems. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS: SECTION 1. Chapter 7.96, "Streamlined Permitting Process for Small Residential Rooftop Solar Systems," is hereby added to the Dublin Municipal Code to read in its entirety as follows: CHAPTER 7.96 STREAMLINED PERMITTING PROCESS FOR SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEMS 7.96.010 Purpose The purpose of the chapter is to provide an expedited, streamlined solar permitting process that complies with the Solar Rights Act and AB 2188 (Chapter 521, Statutes 2014, CA Government Code Section 65850.5) in order to achieve timely and cost-effective installations of small residential rooftop solar energy systems. This chapter allows the city to achieve these goals while protecting the public health and safety. 7.96.020 Definitions For the purpose of this Chapter, the following terms shall have the following definitions: "Electronic submittal" means the utilization of e-mail or such other electronic submittal process as approved by the Building Official. "Reasonable restrictions on a solar energy system" means those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits. "Significantly increase the cost of the system or significantly decrease its efficiency of specified performance" means: A. For Water Heater Systems or Solar Swimming Pool Heating Systems: an increase in the cost of the system as, originally proposed, exceeding the lesser of ten percent (10%) or one thousand dollars ($1,000), or a decrease in the efficiency of the solar energy system, as originally proposed, exceeding ten percent (10%). B. For Photovoltaic Systems: an increase in the cost of the system as originally proposed exceeding one thousand dollars ($1,000), or a decrease in the efficiency of the solar energy system, as originally proposed, exceeding ten percent (10%). "Small residential rooftop solar energy system" means a system that satisfies all of the following requirements: A. A solar energy system that is no larger than 10 kilowatts alternating current nameplate rating or 30 kilowatts thermal. B. A solar energy system that conforms to all applicable state fire, structural, electrical, and other building codes as adopted or amended by the City, and all state and City health and safety standards. C. A solar energy system that is installed on a single or two family dwelling. D. A solar panel or module array that does not exceed the maximum legal building height as defined by the City. Solar Energy System means either of the following: A. Any solar collector or other solar energy device whose primary purpose is to provide for the collection, storage, and distribution of solar energy for space heating, space cooling, electric generation, or water heating. B. Any structural design feature of a building, whose primary purpose is to provide for the collection, storage, and distribution of solar energy for electricity generation, space heating or cooling, or for water heating. 7.96.030 Application A. This chapter applies to the permitting of all small residential rooftop solar energy systems in the City. B. Small residential rooftop solar energy systems legally established or permitted prior to the effective date of the ordinance codified in this chapter are not subject to the requirements of this chapter unless physical modifications or alterations are undertaken that materially change the size, type, or components of a small rooftop energy system in such a way as to require new permitting. Routine operation and maintenance shall not require a permit. 7.96.040 Solar Energy System Requirements A. All solar energy systems shall meet applicable health and safety standards and requirements imposed by the state and the City. B. Solar energy systems for heating water in single-family residences and for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined by the California Plumbing and Mechanical Codes. C. Solar energy systems for producing electricity shall meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability. 7.96.050 Applications and Documents A. All documents required for the submission of an expedited solar energy system application shall be made available on the City website. B. Electronic submittal of the required permit application and documents shall be made available to all small residential rooftop solar energy system permit applicants. C. The City's Building and Safety Division shall maintain a standard plan and checklist of all requirements with which small residential rooftop solar energy systems shall comply to be eligible for expedited review. D. The small residential rooftop solar system permit process, standard plan(s), and checklist(s) shall substantially conform to recommendations for expedited permitting, including the checklist and standard plans contained in the most current version of the California Solar Permitting Guidebook adopted by the Governor's Office of Planning and Research. E. All fees prescribed for the permitting of small residential rooftop solar energy systems must comply with Government Code Section 65850.55, Government Code Section 66015, Government Code Section 66016, and State Health and Safety Code Section 17951 7.96.060 Applicant Verification Prior to submitting an application, the applicant shall: A. Verify to the applicant's reasonable satisfaction through the use of standard engineering evaluation techniques that the support structure for the small residential rooftop solar energy system is stable and adequate to transfer all wind, seismic, and dead and live loads associated with the system to the building foundation; and B. At the applicant's cost, verify to the applicant's reasonable satisfaction using standard electrical inspection techniques that the existing electrical system including existing line, load, ground and bonding wiring as well as main panel and subpanel sizes are adequately sized, based on the existing electrical system's current use, to carry all new photovoltaic electrical loads. 7.96.070 Permit Review and Inspection Requirements A. The Building and Safety Division shall give an application for a small residential rooftop solar energy system, meeting the requirements of the checklist, priority review. B. An application that satisfies the information requirements in the checklist, as determined by the Building Official, shall be deemed complete. Upon receipt of an incomplete application, the Building Official shall issue a written correction notice detailing all deficiencies in the application and any additional information required to be eligible for expedited permit issuance. C. When an applicant uses electronic submittal, the electronic signature of the applicant on all forms, applications and other documentation may be used in lieu of a wet signature. D. Review of the application shall be limited to the Building Official's review of whether the application meets local, state, and federal health and safety requirements. E. If an application is deemed incomplete, a written correction notice detailing all deficiencies in the application and any additional information or documentation required to be eligible for expedited permit issuance shall be sent to the applicant for resubmission. F. Upon confirmation by the Building Official of the application and supporting documentation being complete and meeting the requirements of the checklist, the Building Official shall administratively approve the application and issue all required permits or authorizations. Such approval does not authorize an applicant to connect the small residential rooftop energy system to the local utility provider's electricity grid. The applicant is responsible for obtaining such approval or permission from the local utility provider. G. Only one inspection shall be required and performed by the Building and Safety Division for small residential rooftop solar energy systems eligible for expedited review. Once an applicant informs the Building and Safety Division that such a solar energy system has been installed, the Building and Safety Division shall complete the inspection as soon as practical. H. If a small residential rooftop solar energy system fails the inspection, a reinspection fee shall be charged and a subsequent inspection is authorized. I. The inspection shall be done in a timely manner and shall include consolidated inspections. However, a subsequent inspection, if required, need not conform to the requirements of this subdivision. SECTION 2. Savings Clause. All code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violations, right, liability or appeals. SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the City's rules and regulations. It is the City's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. SECTION 4. Effective date and posting of Ordinance. This ordinance shall take effect and be in force thirty (30) days from and after the date of its passage. This ordinance shall be published in accordance with the provisions of Government Code Section 36933. PASSED, APPROVED AND ADOTPTED this day of , 20157 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 2457993.1