Arizona 2025 Regular Session

Arizona House Bill HB2301 Latest Draft

Bill / Introduced Version Filed 01/15/2025

                            REFERENCE TITLE: solar; building permits; approval process             State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025           HB 2301           Introduced by  Representative Biasiucci                    AN ACT   amending sections 9-468 and 11-323, arizona revised statutes; relating to building permits.     (TEXT OF BILL BEGINS ON NEXT PAGE)   

 

 

 

REFERENCE TITLE: solar; building permits; approval process
State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
HB 2301
Introduced by  Representative Biasiucci

REFERENCE TITLE: solar; building permits; approval process

 

 

 

 

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

 

 

 

HB 2301

 

Introduced by 

Representative Biasiucci

 

 

 

 

 

 

 

 

AN ACT

 

amending sections 9-468 and 11-323, arizona revised statutes; relating to building permits.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 

 Be it enacted by the Legislature of the State of Arizona: Section 1. Section 9-468, Arizona Revised Statutes, is amended to read: START_STATUTE9-468. Solar construction permits; standards; online permitting process; offline field reports; independent providers; exemption; municipal report; applicability; definitions A. Municipalities shall adopt the following standards for issuing permits for the use of certain solar energy devices: 1. For construction with solar photovoltaic systems that are intended to connect to a utility system, the following apply: (a) The location of the photovoltaic system installation shall be indicated on the construction plans, including the roof plan and elevation. (b) Photovoltaic panel mounting details shall be included in the installation plans. (c) The electrical diagrams shall include one-line or three-line diagrams. A one-line or three-line electrical diagram is not required if a qualified online automated permitting platform is used to verify code compliance. (d) For direct current to alternating current conversions, the cut sheet and listings for inverters shall be included in the plans. (e) A municipality shall not require a stamp from a professional engineer for a solar photovoltaic system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary. (f) A municipality may use a qualified online automated permitting platform to verify code compliance in order to satisfy the requirements of subdivisions (a), (b),  and (c) of this paragraph. 2. For solar water heating systems, the following apply: (a) The location of the solar panel system shall be indicated on the construction plans, including the roof plan and elevation, and shall include mounting details for panel installation. (b) Construction plan notes shall include a requirement that solar water heating equipment be installed in compliance with applicable plumbing codes and as prescribed by a solar rating and certification corporation and any guidelines adopted by this state. (c) A municipality shall not require a stamp from a professional engineer for a single-family solar water heating system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary. b. on or before january 1, 2026, Municipalities shall adopt an Instant Permitting Process for Home Power Installations and shall provide an option for Home Power Building Inspections to be performed through Offline Field Reports. Offline Field Reports must be offered at the same cost and be available within the same time frame as an in-person inspection. The online permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a municipality shall provide an instant permitting process for home power installations only if the software being implemented by the municipality is capable of processing a home power application or home power building inspection instantly. C. If a Municipality does not comply with the requirements of subsection b of this section, the Municipality shall allow Home Power Applications to be reviewed by an independent provider or Home Power Installation Inspections to be performed by an Independent Provider. D. Notwithstanding any law, rule or regulation, the owner of land or a building or structure or the owner's licensed contractor, on written authorization from the owner, may contract with an Independent Provider to review Home Power building Applications or perform Home Power Building Inspections and may make payment directly to the Independent Provider for the review or home power building inspection. The independent Provider may use and rely on commercially available software that automates plan review. If the Independent Provider uses software, the independent provider is not required to perform any additional manual review. An Independent Provider who reviews a home power application or performs a home power building inspection shall do both of the following: 1. Review the Home Power Application or perform the Home Power Building Inspection. 2. Within five days after the date the Independent Provider completes the review of the home power application or performs the Home Power Building Inspection, provide a notice to the Municipality that contains all of the following: (a) The name, firm, address, telephone number and email address of the independent provider. (b) The professional license or certification number of the independent provider. (c) A copy of the independent provider's certificate of insurance demonstrating that professional liability insurance coverage is in place for the Independent Provider in the amounts required by subsection K of this section unless the Municipality waives the requirement for liability insurance coverage. (d) The name of the software, if any, that was used and relied on pursuant to subsection D of this section. (e) An owner hold-harmless letter that is signed and dated by the owner and that states the following: the owner agrees To protect, defend, indemnify and hold harmless the Municipality and its officers, representatives, managers and employees against any and all claims, liabilities, judgments, costs, expenses, delays, demands or injuries arising out of or in any way connected with the design, construction, code compliance review or issuance of a building permit or certificate of completion for the project identified in the building permit application. (f) The independent provider's determination of whether the Home Power Application or the home power building inspection is compliant with the relevant codes, standards and rules. (g) The documents that the independent provider relied on to review the Home Power Application or to perform the Home Power Building Inspection. E. If the Independent Provider uses software pursuant to subsection D of this section to perform the review of the Home Power Application, the Municipality shall accept the notice required by subsection d, paragraph 2 of this section generated by the software and shall not require any additional documentation. F. Within two business days after the receipt of the notice required by subsection D, paragraph 2 of this section, the Municipality shall issue the necessary Building Permits or certificates of completion or provide a written notice to the applicant identifying any deficiencies in the documents provided with the notice required by subsection d, paragraph 2 of this section. If the municipality does not provide written notice identifying any deficiencies within the two-day time frame, the Building Permits or certificates of completion shall be deemed approved as a matter of law and any necessary Building Permit or certificate of completion shall be issued by the Municipality on the next business day. G. A Municipality may prescribe a reasonable electronic format for the notice required by subsection d, paragraph 2 of this section. The electronic format shall allow for the notice to be provided to the Municipality by software or by email. If the Municipality has not prescribed a format for the notice required by subsection D, paragraph 2 of this section, the Independent Provider who reviews a Home Power Application or performs a Home Power Building Inspection or the software that the independent provider uses and relies on shall provide notice by email to the email address of the Municipality. H. The construction of a Home Power Installation may commence on the independent provider submitting the notice to the municipality required pursuant to subsection d, paragraph 2 of this section. I. A permit or certificate of completion issued pursuant to subsection B or F of this section has the same validity and enforceability as those not issued pursuant to subsection b or F of this section. A government body or person may not impose any additional burdens on a permit or certificate of completion issued pursuant to subsection b or F of this section. J. The Independent Provider shall meet all of the following: 1. Not be the owner of the property that is the subject of the home power installation or the owner's contractor. 2. Not work for a company owned, in whole or in part, by the owner of the property that is the subject of the home power installation or the owner's contractor. 3. Be registered as an engineer or architect pursuant to title 32, article 1, for at least three years. K. An Independent Provider shall maintain professional liability insurance covering all services performed as an Independent Provider unless the Municipality waives the insurance requirement. An independent provider's professional liability insurance shall have minimum policy limits of $500,000 per occurrence and $1,000,000 in the aggregate. L. A Municipality may not impose a fee related to reviewing a Home Power Application or performing a Home Power Building Inspection under subsections b and c of this section. m. The Municipality shall do one of the following: 1. post on the Municipality's website all of the municipal codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection pursuant to this section in a machine-readable format. 2. Provide all of the municipal codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section within two business days after a request in a machine-readable format. N. The Independent Provider who reviews a Home Power Application or who performs a Home Power building Inspection pursuant to this section shall be able to rely on the accuracy and completeness of the information provided by the Municipality pursuant to subsection m of this section. O. Municipalities that do not require building permits for Home Power Installations or a subset of Home Power Installations or that do not require building inspections for Home Power Installations or a subset of Home Power Installations are exempt from subsections B through N of this section for the subset of home power installations that do not require building permits or building inspections. P. A Municipality may not request or require a permit applicant to waive a deadline or other procedure under subsections b through N of this section. Q. Municipalities shall post compliance reports on the municipal website and send the report to the secretary of state within thirty days after achieving compliance with subsection b of this section. The reports shall include: 1. The date of compliance. 2. A description of the Software or combination of software used for compliance. 3. Confirmation that the Municipality is both: (a) Using an Instant Permitting Process for Home Power Installations and Not requiring manual review at any time before the issuance of a Home Power Building Permit for Home Power Installations going through the Instant Permitting Process. (b) Allowing Home Power Building Inspections to be performed through Offline Field Reports. 4. An Explanation why the Municipality anticipates the Instant Permitting Process has the capability to process home power applications submitted for at least the majority of the types of home power installations installed in this state and is capable of processing energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. This explanation may be based on estimates made by the software provider of the Instant Permitting Process. B. R. Any building or permit fee or charge assessed by a city or town municipality for a building permit for solar construction must be attributable to and defray or cover the expense of the service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost of issuing a permit, and a written, itemized list of the individual costs associated with the permit fee shall be provided at the request of the permittee. C. S. Before adoption of a fee for service or an additional or separate charge pursuant to this section, a city or town municipality shall hold a public hearing on the issue with at least fifteen days' published notice. D. T. The method by which a city or town municipality arrives at an assessed permit or plan fee must be published and made available to the public. u. Subsections B through Q of this section are applicable to a municipality with a population of five thousand persons or more. E. V. For the purposes of this section: ,  1. "Home Power Application" means the application for a Home Power Building Permit that contains the information necessary to determine whether a Home Power Installation is compliant with the relevant codes, standards and rules. 2. "Home Power Building Inspection" means the inspection of a Home Power Installation by a Municipality as part of a Home Power Installation. 3. "Home Power Building Permit" means a permit required by a Municipality to construct, improve, complete or operate a Home Power Installation, including a fire permit. 4. "Home Power Installation" includes a solar photovoltaic installation, an energy storage installation or a combination of a solar photovoltaic installation and energy storage installation providing electrical power to a one or two-family dwelling, along with any associated infrastructure and equipment, including main panel upgrades and main breaker derates. 5. "Independent Provider" means a person registered as an engineer or architect pursuant to title 32, chapter 1 for at least three years. 6. "Instant Permitting Process": (a) Means a permitting process that uses an existing commercially available qualified online automated permitting platform that issues home power building permits and home power building permit revisions instantly on submission of a code-compliant application for a home power building permit and the payment of any required fees. (b) Includes online payment of permitting fees, if applicable. (c) Does not include manual review at any time during or after the application, review or issuance of a Home Power Building Permit. 7. "Machine-Readable Format" means information or data that is in a format that can be easily processed by a computer without human intervention while ensuring that semantic meaning is not lost. 8. "Offline Field Report" means a Home Power Building Inspection that uses photos and videos that are taken on-site and sent to a Municipality to check remotely and asynchronously. 9. "Qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems and residential energy storage systems paired with residential solar energy systems in real time. END_STATUTE Sec. 2. Section 11-323, Arizona Revised Statutes, is amended to read: START_STATUTE11-323. Solar construction permits; standards; online permitting process; offline field reports; independent providers; exemption; municipal report; definitions A. Counties shall adopt the following standards for issuing permits for the use of certain solar energy devices: 1. For construction with solar photovoltaic systems that are intended to connect to a utility system, the following apply: (a) The location of the photovoltaic system installation shall be indicated on the construction plans, including the roof plan and elevation. (b) Photovoltaic panel mounting details shall be included in the installation plans. (c) The electrical diagrams shall include one-line or three-line diagrams. A one-line or three-line electrical diagram is not required if a qualified online automated permitting platform is used to verify code compliance. (d) For direct current to alternating current conversions, the cut sheet and listings for inverters shall be included in the plans. (e) A county shall not require a stamp from a professional engineer for a solar photovoltaic system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the county shall provide the permittee a written explanation of why the engineering stamp is necessary. (f) A county may use a qualified online automated permitting platform to verify code compliance in order to satisfy the requirements of subdivisions (a), (b),  and (c) of this paragraph. 2. For solar water heating systems, the following apply: (a) The location of the solar panel system shall be indicated on the construction plans, including the roof plan and elevation, and shall include mounting details for panel installation. (b) Construction plan notes shall include a requirement that solar water heating equipment be installed in compliance with applicable plumbing codes and as prescribed by a solar rating and certification corporation and any guidelines adopted by this state. (c) A county shall not require a stamp from a professional engineer for a single-family solar water heating system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the county shall provide the permittee a written explanation of why the engineering stamp is necessary. b. on or before january 1, 2026, counties shall adopt an Instant Permitting Process for Home Power Installations and shall provide an option for Home Power Building Inspections to be performed through Offline Field Reports. Offline Field Reports must be offered at the same cost and be available within the same time frame as an in-person inspection. The online permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a county shall provide an instant permitting process for home power installations only if the software being implemented by the county is capable of processing a home power application or home power building inspection instantly. C. If a county does not comply with the requirements of subsection b of this section, the county shall allow Home Power Applications to be reviewed and Home Power Installation Inspections to be performed by an Independent Provider. D. Notwithstanding any law, rule or regulation, the owner of land or a building or structure or the owner's licensed contractor, on written authorization from the owner, may contract with an Independent Provider to review Home Power building Applications or perform Home Power Building Inspections and may make payment directly to the Independent Provider for the review or home power building inspection. The independent Provider may use and rely on commercially available software that automates plan review. If the Independent Provider uses software, the independent provider is not required to perform any additional manual review. An Independent Provider who reviews a home power application or performs a home power building inspection shall do both of the following: 1. Review the Home Power Application or perform the Home Power Building Inspection. 2. Within five days after the date the Independent Provider completes the review of the home power application or performs the Home Power Building Inspection, provide a notice to the county that contains all of the following: (a) The name, firm, address, telephone number and email address of the independent provider. (b) The professional license or certification number of the independent provider. (c) A copy of the independent provider's certificate of insurance demonstrating that professional liability insurance coverage is in place for the Independent Provider in the amounts required by subsection K of this section unless the county waives the requirement for liability insurance coverage. (d) The name of the software, if any, that was used and relied on pursuant to subsection D of this section. (e) An owner hold-harmless letter that is signed and dated by the owner and that states the following: the owner agrees To protect, defend, indemnify and hold harmless the county and its officers, representatives, managers and employees against any and all claims, liabilities, judgments, costs, expenses, delays, demands or injuries arising out of or in any way connected with the design, construction, code compliance review or issuance of a building permit or certificate of completion for the project identified in the building permit application. (f) The independent provider's determination of whether the Home Power Application or the home power building inspection is compliant with the relevant codes, standards and rules. (g) The documents that the independent provider relied on to review the Home Power Application or to perform the Home Power Building Inspection. E. If the Independent Provider uses software pursuant to subsection D of this section to perform the review of the Home Power Application, the county shall accept the notice required by subsection d, paragraph 2 of this section generated by the software and shall not require any additional documentation. F. Within two business days after the receipt of the notice required by subsection D, paragraph 2 of this section, the county shall issue the necessary Building Permits or certificates of completion or provide a written notice to the applicant identifying any deficiencies in the documents provided with the notice required by subsection d, paragraph 2 of this section. If the county does not provide written notice identifying any deficiencies within the two-day time frame, the Building Permits or certificates of completion shall be deemed approved as a matter of law and any necessary Building Permit or certificate of completion shall be issued by the county on the next business day. G. A county may prescribe a reasonable electronic format for the notice required by subsection d, paragraph 2 of this section. The electronic format shall allow for the notice to be provided to the county by software or by email. If the county has not prescribed a format for the notice required by subsection D, paragraph 2 of this section, the Independent Provider who reviews a Home Power Application or performs a Home Power Building Inspection or the software that the independent provider uses and relies on shall provide notice by email to the email address of the county. H. The construction of a Home Power Installation may commence on the independent provider submitting the notice to the county required pursuant to subsection d, paragraph 2 of this section. I. A permit or certificate of completion issued pursuant to subsection B or F of this section shall have the same validity and enforceability as those not issued pursuant to subsection b or F of this section. A government body or person may not impose any additional burdens on a permit or certificate of completion issued pursuant to subsection b or F of this section. J. The Independent Provider shall meet all of the following: 1. Not be the owner of the property that is the subject of the home power installation or the owner's contractor. 2. Not work for a company owned, in whole or in part, by the owner of the property that is the subject of the home power installation or the owner's contractor. 3. Be registered as an engineer or architect pursuant to title 32, article 1 for at least three years. K. An Independent Provider shall maintain professional liability insurance covering all services performed as an Independent Provider unless the county waives the insurance requirement. An independent provider's professional liability insurance shall have minimum policy limits of $500,000 per occurrence and $1,000,000 in the aggregate. L. A county may not impose a fee related to reviewing a Home Power Application or performing a Home Power Building Inspection under subsections b and c of this section. m. The county shall do one of the following: 1. post on the county's website all of the county codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section in a machine-readable format. 2. Provide all of the county codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section within two business days after a request in a machine-readable format. N. The Independent Provider who reviews a Home Power Application or who performs a Home Power building Inspection pursuant to this section shall be able to rely on the accuracy and completeness of the information provided by the county pursuant to subsection m of this section. O. Counties that do not require building permits for Home Power Installations or a subset of Home Power Installations or that do not require building inspections for Home Power Installations or a subset of Home Power Installations are exempt from subsections B through N of this section for the subset of Home Power Installations that do not require building permits or building inspections. P. A county may not request or require a permit applicant to waive a deadline or other procedure under subsections b through N of this section. Q. Counties shall post compliance reports on the county's website and send the report to the secretary of state within thirty days after achieving compliance with subsection b of this section. The reports shall include: 1. The date of compliance. 2. A description of the Software or combination of software used for compliance. 3. Confirmation that the county is both: (a) Using an Instant Permitting Process for Home Power Installations and Not requiring manual review at any time before the issuance of a Home Power Building Permit for Home Power Installations going through the Instant Permitting Process. (b) Allowing Home Power Building Inspections to be performed through Offline Field Reports. 4. An Explanation why the county anticipates the Instant Permitting Process has the capability to process home power applications submitted for at least the majority of the types of home power installations installed in this state and is capable of processing energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. This explanation may be based on estimates made by the software provider of the Instant Permitting Process. B. R. Any building or permit fee or charge assessed by a county for a building permit for solar construction must be attributable to and defray or cover the expense of the service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost of issuing a permit, and a written, itemized list of the individual costs associated with the permit fee shall be provided at the request of the permittee. C. s. Before adoption of a fee for service or an additional or separate charge pursuant to this section, a county shall hold a public hearing on the issue with at least fifteen days' published notice. D. t. The method by which a county arrives at an assessed permit or plan fee must be published and made available to the public. E. u. For the purposes of this section: ,  1. "Home Power Application" means the application for a Home Power Building Permit that contains the information necessary to determine whether a Home Power Installation is compliant with the relevant codes, standards and rules. 2. "Home Power Building Inspection" means the inspection of a Home Power Installation by a county as part of a Home Power Installation. 3. "Home Power Building Permit" means a permit required by a county to construct, improve, complete or operate a Home Power Installation, including a fire permit. 4. "Home Power Installation" includes a solar photovoltaic installation, an energy storage installation or a combination of a solar photovoltaic installation and energy storage installation providing electrical power to a one or two-family dwelling along with any associated infrastructure and equipment, including main panel upgrades and main breaker derates. 5. "Independent Provider" means a person registered as an engineer or architect pursuant to title 32, chapter 1 for at least three years. 6. "Instant Permitting Process": (a) Means a permitting process that uses an existing commercially available qualified online automated permitting platform that issues home power Building Permits and Home Power Building Permit Revisions instantly upon submission of a code compliant application for a Home Power Building Permit and the payment of any required fees. (b) Includes online payment of permitting fees, if applicable. (c) Does not include manual review at any time during or after the application, review or issuance of a Home Power Building Permit. 7. "Machine-Readable Format" means information or data that is in a format that can be easily processed by a computer without human intervention while ensuring that semantic meaning is not lost. 8. "Offline Field Report" means a Home Power Building Inspection that uses photos and videos that are taken on-site and sent to a county to check remotely and asynchronously. 9. "Qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems and residential energy storage systems paired with residential solar energy systems in real time. END_STATUTE 

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 9-468, Arizona Revised Statutes, is amended to read:

START_STATUTE9-468. Solar construction permits; standards; online permitting process; offline field reports; independent providers; exemption; municipal report; applicability; definitions

A. Municipalities shall adopt the following standards for issuing permits for the use of certain solar energy devices:

1. For construction with solar photovoltaic systems that are intended to connect to a utility system, the following apply:

(a) The location of the photovoltaic system installation shall be indicated on the construction plans, including the roof plan and elevation.

(b) Photovoltaic panel mounting details shall be included in the installation plans.

(c) The electrical diagrams shall include one-line or three-line diagrams. A one-line or three-line electrical diagram is not required if a qualified online automated permitting platform is used to verify code compliance.

(d) For direct current to alternating current conversions, the cut sheet and listings for inverters shall be included in the plans.

(e) A municipality shall not require a stamp from a professional engineer for a solar photovoltaic system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary.

(f) A municipality may use a qualified online automated permitting platform to verify code compliance in order to satisfy the requirements of subdivisions (a), (b),  and (c) of this paragraph.

2. For solar water heating systems, the following apply:

(a) The location of the solar panel system shall be indicated on the construction plans, including the roof plan and elevation, and shall include mounting details for panel installation.

(b) Construction plan notes shall include a requirement that solar water heating equipment be installed in compliance with applicable plumbing codes and as prescribed by a solar rating and certification corporation and any guidelines adopted by this state.

(c) A municipality shall not require a stamp from a professional engineer for a single-family solar water heating system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the municipality shall provide the permittee a written explanation of why the engineering stamp is necessary.

b. on or before january 1, 2026, Municipalities shall adopt an Instant Permitting Process for Home Power Installations and shall provide an option for Home Power Building Inspections to be performed through Offline Field Reports. Offline Field Reports must be offered at the same cost and be available within the same time frame as an in-person inspection. The online permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a municipality shall provide an instant permitting process for home power installations only if the software being implemented by the municipality is capable of processing a home power application or home power building inspection instantly.

C. If a Municipality does not comply with the requirements of subsection b of this section, the Municipality shall allow Home Power Applications to be reviewed by an independent provider or Home Power Installation Inspections to be performed by an Independent Provider.

D. Notwithstanding any law, rule or regulation, the owner of land or a building or structure or the owner's licensed contractor, on written authorization from the owner, may contract with an Independent Provider to review Home Power building Applications or perform Home Power Building Inspections and may make payment directly to the Independent Provider for the review or home power building inspection. The independent Provider may use and rely on commercially available software that automates plan review. If the Independent Provider uses software, the independent provider is not required to perform any additional manual review. An Independent Provider who reviews a home power application or performs a home power building inspection shall do both of the following:

1. Review the Home Power Application or perform the Home Power Building Inspection.

2. Within five days after the date the Independent Provider completes the review of the home power application or performs the Home Power Building Inspection, provide a notice to the Municipality that contains all of the following:

(a) The name, firm, address, telephone number and email address of the independent provider.

(b) The professional license or certification number of the independent provider.

(c) A copy of the independent provider's certificate of insurance demonstrating that professional liability insurance coverage is in place for the Independent Provider in the amounts required by subsection K of this section unless the Municipality waives the requirement for liability insurance coverage.

(d) The name of the software, if any, that was used and relied on pursuant to subsection D of this section.

(e) An owner hold-harmless letter that is signed and dated by the owner and that states the following:

the owner agrees To protect, defend, indemnify and hold harmless the Municipality and its officers, representatives, managers and employees against any and all claims, liabilities, judgments, costs, expenses, delays, demands or injuries arising out of or in any way connected with the design, construction, code compliance review or issuance of a building permit or certificate of completion for the project identified in the building permit application.

(f) The independent provider's determination of whether the Home Power Application or the home power building inspection is compliant with the relevant codes, standards and rules.

(g) The documents that the independent provider relied on to review the Home Power Application or to perform the Home Power Building Inspection.

E. If the Independent Provider uses software pursuant to subsection D of this section to perform the review of the Home Power Application, the Municipality shall accept the notice required by subsection d, paragraph 2 of this section generated by the software and shall not require any additional documentation.

F. Within two business days after the receipt of the notice required by subsection D, paragraph 2 of this section, the Municipality shall issue the necessary Building Permits or certificates of completion or provide a written notice to the applicant identifying any deficiencies in the documents provided with the notice required by subsection d, paragraph 2 of this section. If the municipality does not provide written notice identifying any deficiencies within the two-day time frame, the Building Permits or certificates of completion shall be deemed approved as a matter of law and any necessary Building Permit or certificate of completion shall be issued by the Municipality on the next business day.

G. A Municipality may prescribe a reasonable electronic format for the notice required by subsection d, paragraph 2 of this section. The electronic format shall allow for the notice to be provided to the Municipality by software or by email. If the Municipality has not prescribed a format for the notice required by subsection D, paragraph 2 of this section, the Independent Provider who reviews a Home Power Application or performs a Home Power Building Inspection or the software that the independent provider uses and relies on shall provide notice by email to the email address of the Municipality.

H. The construction of a Home Power Installation may commence on the independent provider submitting the notice to the municipality required pursuant to subsection d, paragraph 2 of this section.

I. A permit or certificate of completion issued pursuant to subsection B or F of this section has the same validity and enforceability as those not issued pursuant to subsection b or F of this section. A government body or person may not impose any additional burdens on a permit or certificate of completion issued pursuant to subsection b or F of this section.

J. The Independent Provider shall meet all of the following:

1. Not be the owner of the property that is the subject of the home power installation or the owner's contractor.

2. Not work for a company owned, in whole or in part, by the owner of the property that is the subject of the home power installation or the owner's contractor.

3. Be registered as an engineer or architect pursuant to title 32, article 1, for at least three years.

K. An Independent Provider shall maintain professional liability insurance covering all services performed as an Independent Provider unless the Municipality waives the insurance requirement. An independent provider's professional liability insurance shall have minimum policy limits of $500,000 per occurrence and $1,000,000 in the aggregate.

L. A Municipality may not impose a fee related to reviewing a Home Power Application or performing a Home Power Building Inspection under subsections b and c of this section.

m. The Municipality shall do one of the following:

1. post on the Municipality's website all of the municipal codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection pursuant to this section in a machine-readable format.

2. Provide all of the municipal codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section within two business days after a request in a machine-readable format.

N. The Independent Provider who reviews a Home Power Application or who performs a Home Power building Inspection pursuant to this section shall be able to rely on the accuracy and completeness of the information provided by the Municipality pursuant to subsection m of this section.

O. Municipalities that do not require building permits for Home Power Installations or a subset of Home Power Installations or that do not require building inspections for Home Power Installations or a subset of Home Power Installations are exempt from subsections B through N of this section for the subset of home power installations that do not require building permits or building inspections.

P. A Municipality may not request or require a permit applicant to waive a deadline or other procedure under subsections b through N of this section.

Q. Municipalities shall post compliance reports on the municipal website and send the report to the secretary of state within thirty days after achieving compliance with subsection b of this section. The reports shall include:

1. The date of compliance.

2. A description of the Software or combination of software used for compliance.

3. Confirmation that the Municipality is both:

(a) Using an Instant Permitting Process for Home Power Installations and Not requiring manual review at any time before the issuance of a Home Power Building Permit for Home Power Installations going through the Instant Permitting Process.

(b) Allowing Home Power Building Inspections to be performed through Offline Field Reports.

4. An Explanation why the Municipality anticipates the Instant Permitting Process has the capability to process home power applications submitted for at least the majority of the types of home power installations installed in this state and is capable of processing energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. This explanation may be based on estimates made by the software provider of the Instant Permitting Process.

B. R. Any building or permit fee or charge assessed by a city or town municipality for a building permit for solar construction must be attributable to and defray or cover the expense of the service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost of issuing a permit, and a written, itemized list of the individual costs associated with the permit fee shall be provided at the request of the permittee.

C. S. Before adoption of a fee for service or an additional or separate charge pursuant to this section, a city or town municipality shall hold a public hearing on the issue with at least fifteen days' published notice.

D. T. The method by which a city or town municipality arrives at an assessed permit or plan fee must be published and made available to the public.

u. Subsections B through Q of this section are applicable to a municipality with a population of five thousand persons or more.

E. V. For the purposes of this section: , 

1. "Home Power Application" means the application for a Home Power Building Permit that contains the information necessary to determine whether a Home Power Installation is compliant with the relevant codes, standards and rules.

2. "Home Power Building Inspection" means the inspection of a Home Power Installation by a Municipality as part of a Home Power Installation.

3. "Home Power Building Permit" means a permit required by a Municipality to construct, improve, complete or operate a Home Power Installation, including a fire permit.

4. "Home Power Installation" includes a solar photovoltaic installation, an energy storage installation or a combination of a solar photovoltaic installation and energy storage installation providing electrical power to a one or two-family dwelling, along with any associated infrastructure and equipment, including main panel upgrades and main breaker derates.

5. "Independent Provider" means a person registered as an engineer or architect pursuant to title 32, chapter 1 for at least three years.

6. "Instant Permitting Process":

(a) Means a permitting process that uses an existing commercially available qualified online automated permitting platform that issues home power building permits and home power building permit revisions instantly on submission of a code-compliant application for a home power building permit and the payment of any required fees.

(b) Includes online payment of permitting fees, if applicable.

(c) Does not include manual review at any time during or after the application, review or issuance of a Home Power Building Permit.

7. "Machine-Readable Format" means information or data that is in a format that can be easily processed by a computer without human intervention while ensuring that semantic meaning is not lost.

8. "Offline Field Report" means a Home Power Building Inspection that uses photos and videos that are taken on-site and sent to a Municipality to check remotely and asynchronously.

9. "Qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems and residential energy storage systems paired with residential solar energy systems in real time. END_STATUTE

Sec. 2. Section 11-323, Arizona Revised Statutes, is amended to read:

START_STATUTE11-323. Solar construction permits; standards; online permitting process; offline field reports; independent providers; exemption; municipal report; definitions

A. Counties shall adopt the following standards for issuing permits for the use of certain solar energy devices:

1. For construction with solar photovoltaic systems that are intended to connect to a utility system, the following apply:

(a) The location of the photovoltaic system installation shall be indicated on the construction plans, including the roof plan and elevation.

(b) Photovoltaic panel mounting details shall be included in the installation plans.

(c) The electrical diagrams shall include one-line or three-line diagrams. A one-line or three-line electrical diagram is not required if a qualified online automated permitting platform is used to verify code compliance.

(d) For direct current to alternating current conversions, the cut sheet and listings for inverters shall be included in the plans.

(e) A county shall not require a stamp from a professional engineer for a solar photovoltaic system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the county shall provide the permittee a written explanation of why the engineering stamp is necessary.

(f) A county may use a qualified online automated permitting platform to verify code compliance in order to satisfy the requirements of subdivisions (a), (b),  and (c) of this paragraph.

2. For solar water heating systems, the following apply:

(a) The location of the solar panel system shall be indicated on the construction plans, including the roof plan and elevation, and shall include mounting details for panel installation.

(b) Construction plan notes shall include a requirement that solar water heating equipment be installed in compliance with applicable plumbing codes and as prescribed by a solar rating and certification corporation and any guidelines adopted by this state.

(c) A county shall not require a stamp from a professional engineer for a single-family solar water heating system unless an engineering stamp is deemed necessary. If an engineering stamp is deemed necessary, the county shall provide the permittee a written explanation of why the engineering stamp is necessary.

b. on or before january 1, 2026, counties shall adopt an Instant Permitting Process for Home Power Installations and shall provide an option for Home Power Building Inspections to be performed through Offline Field Reports. Offline Field Reports must be offered at the same cost and be available within the same time frame as an in-person inspection. The online permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a county shall provide an instant permitting process for home power installations only if the software being implemented by the county is capable of processing a home power application or home power building inspection instantly.

C. If a county does not comply with the requirements of subsection b of this section, the county shall allow Home Power Applications to be reviewed and Home Power Installation Inspections to be performed by an Independent Provider.

D. Notwithstanding any law, rule or regulation, the owner of land or a building or structure or the owner's licensed contractor, on written authorization from the owner, may contract with an Independent Provider to review Home Power building Applications or perform Home Power Building Inspections and may make payment directly to the Independent Provider for the review or home power building inspection. The independent Provider may use and rely on commercially available software that automates plan review. If the Independent Provider uses software, the independent provider is not required to perform any additional manual review. An Independent Provider who reviews a home power application or performs a home power building inspection shall do both of the following:

1. Review the Home Power Application or perform the Home Power Building Inspection.

2. Within five days after the date the Independent Provider completes the review of the home power application or performs the Home Power Building Inspection, provide a notice to the county that contains all of the following:

(a) The name, firm, address, telephone number and email address of the independent provider.

(b) The professional license or certification number of the independent provider.

(c) A copy of the independent provider's certificate of insurance demonstrating that professional liability insurance coverage is in place for the Independent Provider in the amounts required by subsection K of this section unless the county waives the requirement for liability insurance coverage.

(d) The name of the software, if any, that was used and relied on pursuant to subsection D of this section.

(e) An owner hold-harmless letter that is signed and dated by the owner and that states the following:

the owner agrees To protect, defend, indemnify and hold harmless the county and its officers, representatives, managers and employees against any and all claims, liabilities, judgments, costs, expenses, delays, demands or injuries arising out of or in any way connected with the design, construction, code compliance review or issuance of a building permit or certificate of completion for the project identified in the building permit application.

(f) The independent provider's determination of whether the Home Power Application or the home power building inspection is compliant with the relevant codes, standards and rules.

(g) The documents that the independent provider relied on to review the Home Power Application or to perform the Home Power Building Inspection.

E. If the Independent Provider uses software pursuant to subsection D of this section to perform the review of the Home Power Application, the county shall accept the notice required by subsection d, paragraph 2 of this section generated by the software and shall not require any additional documentation.

F. Within two business days after the receipt of the notice required by subsection D, paragraph 2 of this section, the county shall issue the necessary Building Permits or certificates of completion or provide a written notice to the applicant identifying any deficiencies in the documents provided with the notice required by subsection d, paragraph 2 of this section. If the county does not provide written notice identifying any deficiencies within the two-day time frame, the Building Permits or certificates of completion shall be deemed approved as a matter of law and any necessary Building Permit or certificate of completion shall be issued by the county on the next business day.

G. A county may prescribe a reasonable electronic format for the notice required by subsection d, paragraph 2 of this section. The electronic format shall allow for the notice to be provided to the county by software or by email. If the county has not prescribed a format for the notice required by subsection D, paragraph 2 of this section, the Independent Provider who reviews a Home Power Application or performs a Home Power Building Inspection or the software that the independent provider uses and relies on shall provide notice by email to the email address of the county.

H. The construction of a Home Power Installation may commence on the independent provider submitting the notice to the county required pursuant to subsection d, paragraph 2 of this section.

I. A permit or certificate of completion issued pursuant to subsection B or F of this section shall have the same validity and enforceability as those not issued pursuant to subsection b or F of this section. A government body or person may not impose any additional burdens on a permit or certificate of completion issued pursuant to subsection b or F of this section.

J. The Independent Provider shall meet all of the following:

1. Not be the owner of the property that is the subject of the home power installation or the owner's contractor.

2. Not work for a company owned, in whole or in part, by the owner of the property that is the subject of the home power installation or the owner's contractor.

3. Be registered as an engineer or architect pursuant to title 32, article 1 for at least three years.

K. An Independent Provider shall maintain professional liability insurance covering all services performed as an Independent Provider unless the county waives the insurance requirement. An independent provider's professional liability insurance shall have minimum policy limits of $500,000 per occurrence and $1,000,000 in the aggregate.

L. A county may not impose a fee related to reviewing a Home Power Application or performing a Home Power Building Inspection under subsections b and c of this section.

m. The county shall do one of the following:

1. post on the county's website all of the county codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section in a machine-readable format.

2. Provide all of the county codes, standards and rules required to review a Home Power Application or perform a Home Power building Inspection, pursuant to this section within two business days after a request in a machine-readable format.

N. The Independent Provider who reviews a Home Power Application or who performs a Home Power building Inspection pursuant to this section shall be able to rely on the accuracy and completeness of the information provided by the county pursuant to subsection m of this section.

O. Counties that do not require building permits for Home Power Installations or a subset of Home Power Installations or that do not require building inspections for Home Power Installations or a subset of Home Power Installations are exempt from subsections B through N of this section for the subset of Home Power Installations that do not require building permits or building inspections.

P. A county may not request or require a permit applicant to waive a deadline or other procedure under subsections b through N of this section.

Q. Counties shall post compliance reports on the county's website and send the report to the secretary of state within thirty days after achieving compliance with subsection b of this section. The reports shall include:

1. The date of compliance.

2. A description of the Software or combination of software used for compliance.

3. Confirmation that the county is both:

(a) Using an Instant Permitting Process for Home Power Installations and Not requiring manual review at any time before the issuance of a Home Power Building Permit for Home Power Installations going through the Instant Permitting Process.

(b) Allowing Home Power Building Inspections to be performed through Offline Field Reports.

4. An Explanation why the county anticipates the Instant Permitting Process has the capability to process home power applications submitted for at least the majority of the types of home power installations installed in this state and is capable of processing energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. This explanation may be based on estimates made by the software provider of the Instant Permitting Process.

B. R. Any building or permit fee or charge assessed by a county for a building permit for solar construction must be attributable to and defray or cover the expense of the service for which the fee or charge is assessed. A fee or charge shall not exceed the actual cost of issuing a permit, and a written, itemized list of the individual costs associated with the permit fee shall be provided at the request of the permittee.

C. s. Before adoption of a fee for service or an additional or separate charge pursuant to this section, a county shall hold a public hearing on the issue with at least fifteen days' published notice.

D. t. The method by which a county arrives at an assessed permit or plan fee must be published and made available to the public.

E. u. For the purposes of this section: , 

1. "Home Power Application" means the application for a Home Power Building Permit that contains the information necessary to determine whether a Home Power Installation is compliant with the relevant codes, standards and rules.

2. "Home Power Building Inspection" means the inspection of a Home Power Installation by a county as part of a Home Power Installation.

3. "Home Power Building Permit" means a permit required by a county to construct, improve, complete or operate a Home Power Installation, including a fire permit.

4. "Home Power Installation" includes a solar photovoltaic installation, an energy storage installation or a combination of a solar photovoltaic installation and energy storage installation providing electrical power to a one or two-family dwelling along with any associated infrastructure and equipment, including main panel upgrades and main breaker derates.

5. "Independent Provider" means a person registered as an engineer or architect pursuant to title 32, chapter 1 for at least three years.

6. "Instant Permitting Process":

(a) Means a permitting process that uses an existing commercially available qualified online automated permitting platform that issues home power Building Permits and Home Power Building Permit Revisions instantly upon submission of a code compliant application for a Home Power Building Permit and the payment of any required fees.

(b) Includes online payment of permitting fees, if applicable.

(c) Does not include manual review at any time during or after the application, review or issuance of a Home Power Building Permit.

7. "Machine-Readable Format" means information or data that is in a format that can be easily processed by a computer without human intervention while ensuring that semantic meaning is not lost.

8. "Offline Field Report" means a Home Power Building Inspection that uses photos and videos that are taken on-site and sent to a county to check remotely and asynchronously.

9. "Qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems and residential energy storage systems paired with residential solar energy systems in real time. END_STATUTE