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Solar Permit Fee Waiver Program <br />March 18, 2013 <br />Page 2 <br />An analysis of the type of solar installation requests received over the past two years indicates <br />that the majority of solar installations in Santa Ana are for single-family homes. Accordingly, the <br />Building Division has implemented streamlining procedures to reduce the time required to review <br />and issue permits for residential solar projects, as well as reducing the fiscal impact of the fee <br />waiver. In December, 2012 Santa Ana was acknowledged for these efforts and was recognized <br />as a model performer by the California Center for Sustainable Energy and the Energy Policy <br />Initiatives Center in its report, Best Practices for Permitting Processes - Southern California <br />Rooftop Solar Challenge. The City was also recognized in this report as one of only a handful of <br />cities in the State that continue to offer a full fee-waiver for solar installations. <br />In September, 2012 the State Legislature passed Senate Bill Number 1222 which directed how <br />Cities and Counties may charge fees for solar energy systems. Specifically, fees for solar <br />permits may not exceed the estimated reasonable cost of providing the service for which the fee <br />is charged, which cannot exceed $500 plus $15 per kilowatt for each kilowatt above 15kW for <br />residential rooftop solar and $1,000 plus $7 per kilowatt for each kilowatt between 51 kW and <br />250kW, plus $5 for every kilowatt above 250kW, for commercial rooftop solar energy systems. <br />In a continued effort to promote greater sustainability in the community, it is recommended that <br />the City Council authorize a two-year permit incentive program for solar energy projects. Such a <br />program would waive permit/inspection fees as an incentive to encourage solar installations. <br />Homeowners, business owners, contractors and others would still submit plans and obtain <br />permits and inspections - but the fees for such projects would be waived. While the number of <br />solar energy projects is expected to continue to grow, the environmental and community benefits <br />of the use of solar energy outweighs the impacts to workloads and/or reductions in revenue. By <br />renewing this program Santa Ana will remain a leader in promoting the use of solar energy for <br />both commercial and residential applications. <br />FISCAL IMPACT <br />Based on the fee structure specified in Senate Bill 1222 and the current rate of solar system <br />projects received, it is estimated that the total cost of the two-year program would be <br />approximately $68,000. This amount represents an estimate of uncollected permitting fees for <br />the general fund revenue accounts for Building Plan Check (no. 0111600253600), Plumbing Plan <br />Check account (no. 011600253602), Electrical Plan Check account (no. 0111600253601), <br />Building Permits account (no. 0111600251601), Plumbing Permits account (no. <br />0111600251602), and Electrical Permits account (no. 0111600251603). <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />J y VI. Trevino <br />Executive Director <br />Planning & Building Agency <br />MF:rb <br />mflreports\Solar Permits Fee waiver- RFCA_3-18-2013 <br /> <br />Francisco Gutierrez <br />Executive Director 01/ <br />Finance & Management Services Agency <br />55A-2