SECTIONS 2868-2869 - California Statutes

PUBLIC UTILITIES CODE

SECTION 2868-2869

2868. The following definitions shall apply for purposes of this
article:
(a) "Electric utility" means an electrical corporation as defined
in Section 218, a local publicly owned electric utility as defined in
Section 9604, or an electrical cooperative as defined in Section
2776.
(b) "Independent solar energy producer" means a corporation or
person employing one or more solar energy systems for the generation
of electricity for any one or more of the following purposes:
(1) Its own use or the use of its tenants.
(2) The use of, or sale to, not more than two other entities or
persons per generation system solely for use on the real property on
which the electricity is generated, or on real property immediately
adjacent thereto.
(c) "Real property" means a single parcel of land.
(d) "Solar energy system" means any configuration of solar energy
devices that collects and distributes solar energy for the purpose of
generating electricity and that has a single interconnection with
the electric utility transmission or distribution network.

2869. (a) (1) An independent solar energy producer contracting for
the use or sale of electricity or the lease of a solar energy system,
to an entity or person, for use in a residence shall include a
disclosure to the buyer or lessee that, at a minimum, includes all of
the following:
(A) A good faith estimate of the kilowatthours to be delivered by
the solar energy system.
(B) A plain language explanation of the terms under which the
pricing will be calculated over the life of the contract and a good
faith estimate of the price per kilowatthour.
(C) A plain language explanation of operation and maintenance
responsibilities of the contract parties.
(D) A plain language explanation of the contract provisions
regulating the disposition or transfer of the contract in the event
of a transfer of ownership of the residence, as well as the costs or
potential costs associated with the disposition or transfer of the
contract.
(E) A plain language explanation of the disposition of the solar
energy system at the end of the term of the contract.
(2) The commission may require, as a condition of receiving
ratepayer funded incentives, that an independent solar energy
producer provide additional disclosure to the buyer or lessee, the
commission, or both.
(b) An independent solar energy producer contracting for the use
or sale of electricity or the lease of a solar energy system, to an
entity or person, for use in a residence shall record a Notice of an
Independent Solar Energy Producer Contract, within 30 days of the
signing of the contract, against the title to the real property on
which the electricity is generated, and against the title to any
adjacent real property on which the electricity will be used, in the
office of the county recorder for the county in which the real
property is located. The notice shall include all of the following
and may include additional information:
(1) (A) If the solar energy system is located on the real
property, a prominent title at the top of the document in 14-point
type stating "Notice of an Independent Solar Energy Producer Contract"
and the following statement:
"This real property is receiving part of its electric service from
an independent solar energy producer that has retained ownership of
a solar electric generation system that is located on the real
property. The independent solar energy producer provides electric
service to the current owner of this real property through a
long-term contract for electric service. The independent solar energy
producer is required to provide a copy of the contract to a
prospective buyer of the real property within ten (10) days of the
receipt of a written request from the current owner of this real
property."
(B) If the solar energy system is located on an adjacent real
property, a prominent title at the top of the document in 14-point
type stating "Notice of an Independent Solar Energy Producer Contract"
and the following statement:
"This real property is receiving part of its electric service from
an independent solar energy producer that has retained ownership of
a solar electric generation system that is located on an adjacent
real property. The independent solar energy producer provides
electric service to the current owner of this real property through a
long-term contract for electric service. The independent solar
energy producer is required to provide a copy of the contract to a
prospective buyer of this real property within ten (10) days of the
receipt of a written request from the current owner of this real
property."
(2) The address and assessor's parcel number of the real property
against which the notice is recorded.
(3) The name, address, and telephone number of the independent
solar energy producer, and any other contact information deemed
necessary by the independent solar energy producer.
(4) A statement identifying whether the contract is a contract for
the sale of electricity or for the lease of a solar energy system,
and providing the dates on which the contract commences and
terminates.
(5) A plain language summary of the potential costs, consequences,
and assignment of responsibilities, if any, that could result in the
event the contract is terminated.
(c) (1) The recorded Notice of an Independent Solar Energy
Producer Contract does not constitute a title defect, lien, or
encumbrance against the real property, and the independent solar
energy producer shall be solely responsible for the accuracy of the
information provided in the notice and for recording the document
with the county recorder.
(2) The independent solar energy producer shall record a
subsequent document extinguishing the Notice of an Independent Solar
Energy Producer Contract if the contract is voided, terminated, sold,
assigned, or transferred. If the independent solar energy producer
transfers its obligation under the contract or changes its contact
information, it shall record a new notice reflecting these changes
within 30 days of their occurrence.
(3) Within 30 days of the termination of a contract for the use or
sale of electricity or the lease of a solar energy system, the
independent solar energy producer shall record a subsequent document
extinguishing the Notice of an Independent Solar Energy Producer
Contract from the title to the real property on which the electricity
is generated, and from the title to any adjacent real property on
which the electricity was used, in the office of the county recorder
for the county in which the real property is located.
(d) An independent solar energy producer contracting for the use
or sale of electricity or the lease of a solar energy system shall
provide a copy of the existing contract to a prospective buyer of the
real property where the electricity is used or generated within ten
(10) days of the receipt of a written request from the current owner
of the real property.
(e) (1) All contracts for the sale of electricity by an
independent solar energy producer to an entity or person, for use in
a residential dwelling shall be made available to the commission upon
its request, and shall be confidential, except as provided for in
this subdivision. The disclosures required by subdivision (a) may be
made open to public inspection or made public by the commission.
(2) A contract provided to the commission pursuant to this
subdivision shall not be open to public inspection or made public,
except on order of the commission, or by the commission or a
commissioner in the course of a hearing or proceeding.
(3) This subdivision does not eliminate or modify any rule or
provision of law that provides for the confidentiality of information
submitted to the commission in the course of its proceedings.
(f) A master-meter customer of an electric utility who purchases
electricity or leases a solar energy system from an independent solar
energy producer, and who provides electric service to users who are
tenants of a mobilehome park, apartment building, or similar
residential complex, shall do both of the following:
(1) Charge each user of the electric service that is under a
submetered system a rate for the solar generated electricity not to
exceed the rate charged by the independent solar energy producer or
the electric utility's rate for an equivalent amount of electricity,
whichever is lower.
(2) Comply with the provisions of Section 739.5 or 12821.5, and
any rules set forth by an electric utility for master-meter
customers.
(g) No transfer of real property subject to this article shall be
invalidated solely because of the failure of any person to comply
with any provision of this article. Any person who willfully or
negligently violates or fails to perform any duty prescribed by any
provision of this article shall be civilly liable in the amount of
actual damages suffered by a transferee or transferor of the real
property as a consequence of that violation or failure.