Amended IN Assembly April 21, 2025 Amended IN Assembly March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1104Introduced by Assembly Member PellerinFebruary 20, 2025 An act to amend Sections 769.2 and 2868 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1104, as amended, Pellerin. Small Business Renewable Energy Access and Protection Act.(1) Existing law requires each electrical utility or other entity that offers electrical service, except as specified, to develop a standard contract or tariff that provides for net energy metering (NEM), that, among other things, compensates each eligible customer-generator, as defined, for the electricity it generated, as provided. Existing law requires each electrical utility to make the contract or tariff, commonly known as NEM 1.0, available to eligible customer-generators, upon request, as specified. Existing law requires the commission to develop an additional standard contract or tariff, and requires each large electrical corporation to offer this standard contract or tariff, commonly known as NEM 2.0, to its eligible customer-generators, as provided. Existing law authorizes the commission to revise the standard contract or tariff, as specified. Pursuant to its authority, the commission adopted Decision 22-12-056 (December 19, 2022), commonly known as the net billing tariff, that creates a successor tariff to NEM 1.0 and NEM 2.0, and includes specified elements.Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law requires the awarding body, as defined, of a contract for public work to do specified things, including to withhold and retain all amounts required to satisfy any civil wage and penalty assessments issued by the Labor Commissioner from payments made to the contractor, as specified. Existing law constitutes, beginning December 31, 2023, the construction of any renewable electrical generation facility and any associated battery storage that receives service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff, except as specified, as a public works project.This bill would provide, for the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than one megawatt of electrical energy, and any associated battery storage, that the entity that engaged the contractor is not an awarding body. The bill would provide that specified public works project requirements apply to the entity.This bill would prohibit the entity that engaged the contractor for construction of a renewable electrical generation facility or associated battery storage, as described above, from being an awarding body, as defined, and would prohibit certain public works project requirements from applying to that entity.Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that an enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from eligibility being eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff.This bill would qualify a nonresidential photovoltaic renewable electrical generation facility to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite an enforcement of a willful violation as described above against a contractor for the construction of the facility, as provided. The bill would, for a technical or unintentional violation by the contractor, grant a cure period of 90 calendar days from the date of the notice of noncompliance to the contractor to cure the violation and make restitution to any affected workers. The bill would provide that if the contractor corrects the violation within the cure period and provides evidence of correction to the Department of Industrial Relations, the violation will be considered resolved, and no penalties will be imposed for that violation. The bill would provide that specified penalties for contractor noncompliance do not accrue to the entity that engaged the contractor, but to the contractor.This bill instead would make a renewable electrical generation facility eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.(2) Existing law provides for the regulation of electrical corporations and electric service providers by the commission and requires the electrical corporations and electric service providers to do specified things. Existing law exempts from the definitions of electrical corporation and electric service provider an independent solar energy producer, defined as a corporation or person employing one or more solar energy systems for the generation or electricity for its own use or the use of one of its tenants, or the use of, or sale to, not more than 2 other entities, as provided. Existing law requires independent solar energy producers to do specified things, including, when contracting for the use or sale of electricity or lease of the solar energy system, to record a Notice of an Independent Solar Energy Producer Contract against the title to the real property on which the electricity is generated, and against the title of any adjacent real property on which the electricity will be used, in the office of the county recorder, as specified.This bill would also allow an independent solar energy producer to generate electricity for use of, or sale to, not more than a specified number of entities per generation system.(3) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above-described provisions of this bill would be a part of the act and a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Small Business Renewable Energy Access and Protection Act.SEC. 2. (a) The Legislature finds and declares all of the following:(1) Californias commercial solar market is facing significant challenges, including restrictive policies, that are resulting in job losses and undermining the states goal that 100 percent of all retail sales of electricity to California end-use customers come from eligible renewable energy resources and zero-carbon resources by 2045 pursuant to Section 454.53 of the Public Utilities Code.(2) Policies that limit the development of clean energy projects are hindering business investments and contributing to significant job losses within the sector.(3) Federal laws, including the Inflation Reduction Act of 2022 (Public Law 117-169), provide an effective framework for supporting small clean energy projects. Alignment with federal provisions will help stimulate growth in Californias commercial solar market.(b) It is the intent of the Legislature to do all of the following: accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.(1)Encourage businesses to invest in clean energy projects by providing a tailored exemption to some public works project requirements for the nonresidential entities that construct solar projects of 1 megawatt of generating capacity and smaller.(2)Provide an opportunity for contractors to cure violations of certain public works project requirements, in line with protections provided by the Inflation Reduction Act of 2022 (Public Law 117-169), so that contractors can maintain compliance without imposing undue penalties on the nonresidential entities that construct these projects.(3)Accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.SEC. 3. Section 769.2 of the Public Utilities Code is amended to read:769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.SEC. 4. Section 2868 of the Public Utilities Code is amended to read: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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly April 21, 2025 Amended IN Assembly March 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1104Introduced by Assembly Member PellerinFebruary 20, 2025 An act to amend Sections 769.2 and 2868 of the Public Utilities Code, relating to energy. LEGISLATIVE COUNSEL'S DIGESTAB 1104, as amended, Pellerin. Small Business Renewable Energy Access and Protection Act.(1) Existing law requires each electrical utility or other entity that offers electrical service, except as specified, to develop a standard contract or tariff that provides for net energy metering (NEM), that, among other things, compensates each eligible customer-generator, as defined, for the electricity it generated, as provided. Existing law requires each electrical utility to make the contract or tariff, commonly known as NEM 1.0, available to eligible customer-generators, upon request, as specified. Existing law requires the commission to develop an additional standard contract or tariff, and requires each large electrical corporation to offer this standard contract or tariff, commonly known as NEM 2.0, to its eligible customer-generators, as provided. Existing law authorizes the commission to revise the standard contract or tariff, as specified. Pursuant to its authority, the commission adopted Decision 22-12-056 (December 19, 2022), commonly known as the net billing tariff, that creates a successor tariff to NEM 1.0 and NEM 2.0, and includes specified elements.Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law requires the awarding body, as defined, of a contract for public work to do specified things, including to withhold and retain all amounts required to satisfy any civil wage and penalty assessments issued by the Labor Commissioner from payments made to the contractor, as specified. Existing law constitutes, beginning December 31, 2023, the construction of any renewable electrical generation facility and any associated battery storage that receives service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff, except as specified, as a public works project.This bill would provide, for the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than one megawatt of electrical energy, and any associated battery storage, that the entity that engaged the contractor is not an awarding body. The bill would provide that specified public works project requirements apply to the entity.This bill would prohibit the entity that engaged the contractor for construction of a renewable electrical generation facility or associated battery storage, as described above, from being an awarding body, as defined, and would prohibit certain public works project requirements from applying to that entity.Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that an enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from eligibility being eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff.This bill would qualify a nonresidential photovoltaic renewable electrical generation facility to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite an enforcement of a willful violation as described above against a contractor for the construction of the facility, as provided. The bill would, for a technical or unintentional violation by the contractor, grant a cure period of 90 calendar days from the date of the notice of noncompliance to the contractor to cure the violation and make restitution to any affected workers. The bill would provide that if the contractor corrects the violation within the cure period and provides evidence of correction to the Department of Industrial Relations, the violation will be considered resolved, and no penalties will be imposed for that violation. The bill would provide that specified penalties for contractor noncompliance do not accrue to the entity that engaged the contractor, but to the contractor.This bill instead would make a renewable electrical generation facility eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.(2) Existing law provides for the regulation of electrical corporations and electric service providers by the commission and requires the electrical corporations and electric service providers to do specified things. Existing law exempts from the definitions of electrical corporation and electric service provider an independent solar energy producer, defined as a corporation or person employing one or more solar energy systems for the generation or electricity for its own use or the use of one of its tenants, or the use of, or sale to, not more than 2 other entities, as provided. Existing law requires independent solar energy producers to do specified things, including, when contracting for the use or sale of electricity or lease of the solar energy system, to record a Notice of an Independent Solar Energy Producer Contract against the title to the real property on which the electricity is generated, and against the title of any adjacent real property on which the electricity will be used, in the office of the county recorder, as specified.This bill would also allow an independent solar energy producer to generate electricity for use of, or sale to, not more than a specified number of entities per generation system.(3) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above-described provisions of this bill would be a part of the act and a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly April 21, 2025 Amended IN Assembly March 25, 2025
Amended IN Assembly April 21, 2025
Amended IN Assembly March 25, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1104
Introduced by Assembly Member PellerinFebruary 20, 2025
Introduced by Assembly Member Pellerin
February 20, 2025
An act to amend Sections 769.2 and 2868 of the Public Utilities Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1104, as amended, Pellerin. Small Business Renewable Energy Access and Protection Act.
(1) Existing law requires each electrical utility or other entity that offers electrical service, except as specified, to develop a standard contract or tariff that provides for net energy metering (NEM), that, among other things, compensates each eligible customer-generator, as defined, for the electricity it generated, as provided. Existing law requires each electrical utility to make the contract or tariff, commonly known as NEM 1.0, available to eligible customer-generators, upon request, as specified. Existing law requires the commission to develop an additional standard contract or tariff, and requires each large electrical corporation to offer this standard contract or tariff, commonly known as NEM 2.0, to its eligible customer-generators, as provided. Existing law authorizes the commission to revise the standard contract or tariff, as specified. Pursuant to its authority, the commission adopted Decision 22-12-056 (December 19, 2022), commonly known as the net billing tariff, that creates a successor tariff to NEM 1.0 and NEM 2.0, and includes specified elements.Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law requires the awarding body, as defined, of a contract for public work to do specified things, including to withhold and retain all amounts required to satisfy any civil wage and penalty assessments issued by the Labor Commissioner from payments made to the contractor, as specified. Existing law constitutes, beginning December 31, 2023, the construction of any renewable electrical generation facility and any associated battery storage that receives service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff, except as specified, as a public works project.This bill would provide, for the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than one megawatt of electrical energy, and any associated battery storage, that the entity that engaged the contractor is not an awarding body. The bill would provide that specified public works project requirements apply to the entity.This bill would prohibit the entity that engaged the contractor for construction of a renewable electrical generation facility or associated battery storage, as described above, from being an awarding body, as defined, and would prohibit certain public works project requirements from applying to that entity.Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that an enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from eligibility being eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff.This bill would qualify a nonresidential photovoltaic renewable electrical generation facility to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite an enforcement of a willful violation as described above against a contractor for the construction of the facility, as provided. The bill would, for a technical or unintentional violation by the contractor, grant a cure period of 90 calendar days from the date of the notice of noncompliance to the contractor to cure the violation and make restitution to any affected workers. The bill would provide that if the contractor corrects the violation within the cure period and provides evidence of correction to the Department of Industrial Relations, the violation will be considered resolved, and no penalties will be imposed for that violation. The bill would provide that specified penalties for contractor noncompliance do not accrue to the entity that engaged the contractor, but to the contractor.This bill instead would make a renewable electrical generation facility eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.(2) Existing law provides for the regulation of electrical corporations and electric service providers by the commission and requires the electrical corporations and electric service providers to do specified things. Existing law exempts from the definitions of electrical corporation and electric service provider an independent solar energy producer, defined as a corporation or person employing one or more solar energy systems for the generation or electricity for its own use or the use of one of its tenants, or the use of, or sale to, not more than 2 other entities, as provided. Existing law requires independent solar energy producers to do specified things, including, when contracting for the use or sale of electricity or lease of the solar energy system, to record a Notice of an Independent Solar Energy Producer Contract against the title to the real property on which the electricity is generated, and against the title of any adjacent real property on which the electricity will be used, in the office of the county recorder, as specified.This bill would also allow an independent solar energy producer to generate electricity for use of, or sale to, not more than a specified number of entities per generation system.(3) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.Because certain of the above-described provisions of this bill would be a part of the act and a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
(1) Existing law requires each electrical utility or other entity that offers electrical service, except as specified, to develop a standard contract or tariff that provides for net energy metering (NEM), that, among other things, compensates each eligible customer-generator, as defined, for the electricity it generated, as provided. Existing law requires each electrical utility to make the contract or tariff, commonly known as NEM 1.0, available to eligible customer-generators, upon request, as specified. Existing law requires the commission to develop an additional standard contract or tariff, and requires each large electrical corporation to offer this standard contract or tariff, commonly known as NEM 2.0, to its eligible customer-generators, as provided. Existing law authorizes the commission to revise the standard contract or tariff, as specified. Pursuant to its authority, the commission adopted Decision 22-12-056 (December 19, 2022), commonly known as the net billing tariff, that creates a successor tariff to NEM 1.0 and NEM 2.0, and includes specified elements.
Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law defines the term public works for purposes of requirements regarding the payment of prevailing wages to include construction, alteration, demolition, installation, or repair work done under contract and paid for using public funds, except as specified. Existing law requires the awarding body, as defined, of a contract for public work to do specified things, including to withhold and retain all amounts required to satisfy any civil wage and penalty assessments issued by the Labor Commissioner from payments made to the contractor, as specified. Existing law constitutes, beginning December 31, 2023, the construction of any renewable electrical generation facility and any associated battery storage that receives service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff, except as specified, as a public works project.
This bill would provide, for the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than one megawatt of electrical energy, and any associated battery storage, that the entity that engaged the contractor is not an awarding body. The bill would provide that specified public works project requirements apply to the entity.
This bill would prohibit the entity that engaged the contractor for construction of a renewable electrical generation facility or associated battery storage, as described above, from being an awarding body, as defined, and would prohibit certain public works project requirements from applying to that entity.
Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that an enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from eligibility being eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff.
This bill would qualify a nonresidential photovoltaic renewable electrical generation facility to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite an enforcement of a willful violation as described above against a contractor for the construction of the facility, as provided. The bill would, for a technical or unintentional violation by the contractor, grant a cure period of 90 calendar days from the date of the notice of noncompliance to the contractor to cure the violation and make restitution to any affected workers. The bill would provide that if the contractor corrects the violation within the cure period and provides evidence of correction to the Department of Industrial Relations, the violation will be considered resolved, and no penalties will be imposed for that violation. The bill would provide that specified penalties for contractor noncompliance do not accrue to the entity that engaged the contractor, but to the contractor.
This bill instead would make a renewable electrical generation facility eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.
(2) Existing law provides for the regulation of electrical corporations and electric service providers by the commission and requires the electrical corporations and electric service providers to do specified things. Existing law exempts from the definitions of electrical corporation and electric service provider an independent solar energy producer, defined as a corporation or person employing one or more solar energy systems for the generation or electricity for its own use or the use of one of its tenants, or the use of, or sale to, not more than 2 other entities, as provided. Existing law requires independent solar energy producers to do specified things, including, when contracting for the use or sale of electricity or lease of the solar energy system, to record a Notice of an Independent Solar Energy Producer Contract against the title to the real property on which the electricity is generated, and against the title of any adjacent real property on which the electricity will be used, in the office of the county recorder, as specified.
This bill would also allow an independent solar energy producer to generate electricity for use of, or sale to, not more than a specified number of entities per generation system.
(3) Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because certain of the above-described provisions of this bill would be a part of the act and a violation of a commission action implementing the bills requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. This act shall be known, and may be cited, as the Small Business Renewable Energy Access and Protection Act.SEC. 2. (a) The Legislature finds and declares all of the following:(1) Californias commercial solar market is facing significant challenges, including restrictive policies, that are resulting in job losses and undermining the states goal that 100 percent of all retail sales of electricity to California end-use customers come from eligible renewable energy resources and zero-carbon resources by 2045 pursuant to Section 454.53 of the Public Utilities Code.(2) Policies that limit the development of clean energy projects are hindering business investments and contributing to significant job losses within the sector.(3) Federal laws, including the Inflation Reduction Act of 2022 (Public Law 117-169), provide an effective framework for supporting small clean energy projects. Alignment with federal provisions will help stimulate growth in Californias commercial solar market.(b) It is the intent of the Legislature to do all of the following: accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.(1)Encourage businesses to invest in clean energy projects by providing a tailored exemption to some public works project requirements for the nonresidential entities that construct solar projects of 1 megawatt of generating capacity and smaller.(2)Provide an opportunity for contractors to cure violations of certain public works project requirements, in line with protections provided by the Inflation Reduction Act of 2022 (Public Law 117-169), so that contractors can maintain compliance without imposing undue penalties on the nonresidential entities that construct these projects.(3)Accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.SEC. 3. Section 769.2 of the Public Utilities Code is amended to read:769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.SEC. 4. Section 2868 of the Public Utilities Code is amended to read: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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. This act shall be known, and may be cited, as the Small Business Renewable Energy Access and Protection Act.
SECTION 1. This act shall be known, and may be cited, as the Small Business Renewable Energy Access and Protection Act.
SECTION 1. This act shall be known, and may be cited, as the Small Business Renewable Energy Access and Protection Act.
### SECTION 1.
SEC. 2. (a) The Legislature finds and declares all of the following:(1) Californias commercial solar market is facing significant challenges, including restrictive policies, that are resulting in job losses and undermining the states goal that 100 percent of all retail sales of electricity to California end-use customers come from eligible renewable energy resources and zero-carbon resources by 2045 pursuant to Section 454.53 of the Public Utilities Code.(2) Policies that limit the development of clean energy projects are hindering business investments and contributing to significant job losses within the sector.(3) Federal laws, including the Inflation Reduction Act of 2022 (Public Law 117-169), provide an effective framework for supporting small clean energy projects. Alignment with federal provisions will help stimulate growth in Californias commercial solar market.(b) It is the intent of the Legislature to do all of the following: accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.(1)Encourage businesses to invest in clean energy projects by providing a tailored exemption to some public works project requirements for the nonresidential entities that construct solar projects of 1 megawatt of generating capacity and smaller.(2)Provide an opportunity for contractors to cure violations of certain public works project requirements, in line with protections provided by the Inflation Reduction Act of 2022 (Public Law 117-169), so that contractors can maintain compliance without imposing undue penalties on the nonresidential entities that construct these projects.(3)Accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.
SEC. 2. (a) The Legislature finds and declares all of the following:(1) Californias commercial solar market is facing significant challenges, including restrictive policies, that are resulting in job losses and undermining the states goal that 100 percent of all retail sales of electricity to California end-use customers come from eligible renewable energy resources and zero-carbon resources by 2045 pursuant to Section 454.53 of the Public Utilities Code.(2) Policies that limit the development of clean energy projects are hindering business investments and contributing to significant job losses within the sector.(3) Federal laws, including the Inflation Reduction Act of 2022 (Public Law 117-169), provide an effective framework for supporting small clean energy projects. Alignment with federal provisions will help stimulate growth in Californias commercial solar market.(b) It is the intent of the Legislature to do all of the following: accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.(1)Encourage businesses to invest in clean energy projects by providing a tailored exemption to some public works project requirements for the nonresidential entities that construct solar projects of 1 megawatt of generating capacity and smaller.(2)Provide an opportunity for contractors to cure violations of certain public works project requirements, in line with protections provided by the Inflation Reduction Act of 2022 (Public Law 117-169), so that contractors can maintain compliance without imposing undue penalties on the nonresidential entities that construct these projects.(3)Accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.
SEC. 2. (a) The Legislature finds and declares all of the following:
### SEC. 2.
(1) Californias commercial solar market is facing significant challenges, including restrictive policies, that are resulting in job losses and undermining the states goal that 100 percent of all retail sales of electricity to California end-use customers come from eligible renewable energy resources and zero-carbon resources by 2045 pursuant to Section 454.53 of the Public Utilities Code.
(2) Policies that limit the development of clean energy projects are hindering business investments and contributing to significant job losses within the sector.
(3) Federal laws, including the Inflation Reduction Act of 2022 (Public Law 117-169), provide an effective framework for supporting small clean energy projects. Alignment with federal provisions will help stimulate growth in Californias commercial solar market.
(b) It is the intent of the Legislature to do all of the following: accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.
(1)Encourage businesses to invest in clean energy projects by providing a tailored exemption to some public works project requirements for the nonresidential entities that construct solar projects of 1 megawatt of generating capacity and smaller.
(2)Provide an opportunity for contractors to cure violations of certain public works project requirements, in line with protections provided by the Inflation Reduction Act of 2022 (Public Law 117-169), so that contractors can maintain compliance without imposing undue penalties on the nonresidential entities that construct these projects.
(3)Accelerate the achievement of Californias clean energy goals by clarifying that the use or sale of solar to no more than 20 entities per generation system is not subject to public utility regulation.
SEC. 3. Section 769.2 of the Public Utilities Code is amended to read:769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.
SEC. 3. Section 769.2 of the Public Utilities Code is amended to read:
### SEC. 3.
769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.
769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.
769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.
769.2. (a) Notwithstanding paragraph (1) of subdivision (a) of Section 1720 of the Labor Code, construction of a renewable electrical generation facility, and associated battery storage, after December 31, 2023, that receives service pursuant to the standard contract or tariff developed pursuant to Section 2827.1, shall constitute a public works project for purposes of Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, except as specified in subdivision (f).
###### 769.2.
(b) A contractor who enters into a contract to perform work on a renewable electrical generation facility or associated battery storage described in subdivision (a) shall do all of the following:
(1) The contractor shall pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.
(2) The contractor shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section. Notwithstanding Section 1776 of the Labor Code, the contractor shall not be required to provide copies of certified payroll records to any entity other than the Department of Industrial Relations and the commission.
(3) The contractor shall biannually, on July 1 and December 31 of each year, submit to the commission digital copies of its certified payroll records for projects subject to this section. The commission shall retain these records as public records for five years.
(c) The requirement imposed in paragraph (1) of subdivision (b) may be enforced through any of the following mechanisms:
(1) Within 18 months after completing the renewable electrical generation facility, by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code.
(2) By an underpaid construction worker or apprentice through an administrative complaint or civil action.
(3) By a joint labor-management committee through a civil action pursuant to Section 1771.2 of the Labor Code.
(d) If a willful violation of this section has been enforced against a contractor for the construction of a renewable electrical generation facility pursuant to subdivision (c), that facility shall not be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1. 2827.1 if restitution has been made to the affected workers and all associated penalties and fines have been paid.
(e) The commission shall require each large electrical corporation to include the requirements of this section in each standard contract or tariff offered pursuant to Section 2827.1.
(f) (1) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and has a maximum generating capacity of 15 kilowatts or less of electricity.
(2) This section does not apply to a residential renewable electrical generation facility that is eligible to receive service pursuant to the standard contract or tariff developed pursuant to Section 2827.1 and that is installed on a single-family home.
(3) This section does not apply to a project that is a public work, as defined in Section 1720 of the Labor Code, and that is subject to Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.
(4) This section does not apply to a renewable electrical generation facility that serves only a modular home, a modular home community, or multiunit housing that has two or fewer stories.
(g)(1)For the construction of a nonresidential photovoltaic renewable electrical generation facility that has a maximum net output of less than 1 megawatt of electrical energy, as measured in alternating current, and associated battery storage, all of the following shall apply:
(A)The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity.
(B)Notwithstanding subdivision (d), the nonresidential photovoltaic renewable electrical generation facility shall be eligible to receive service pursuant to a standard contract or tariff developed pursuant to Section 2827 or 2827.1 regardless of whether a willful violation of this section has been enforced against the contractor for the construction of the facility pursuant to subdivision (c).
(C)For a technical or unintentional violation of this section by the contractor, the contractor shall have a period of 90 calendar days from the date of the notice of noncompliance to cure the violation and make restitution to any affected workers. If the contractor corrects the violation within this 90-day cure period and provides evidence of correction to the Department of Industrial Relations, the violation shall be considered resolved, and no penalty shall be imposed for that violation. If the contractor fails to cure the violation within the 90-day cure period, the contractor shall be subject to a penalty pursuant to subdivision (c).
(D)A penalty for contractor noncompliance with this section shall not accrue to the entity that engaged the contractor, but only to the contractor.
(2)This subdivision does not alter a contractors obligation to comply with prevailing wage or apprenticeship requirements that are required for a project subject to this section, including, but not limited to, any registration, reporting, or compliance requirements of the commission or of the Department of Industrial Relations.
(5) The entity that engaged the contractor is not an awarding body, as defined in Section 1722 of the Labor Code. Public works project requirements not found in this section do not apply to the entity. This section does not affect the entitys liability for nonpayment of wages or materials under Section 3 of Article XIV of the California Constitution.
SEC. 4. Section 2868 of the Public Utilities Code is amended to read: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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.
SEC. 4. Section 2868 of the Public Utilities Code is amended to read:
### SEC. 4.
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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.
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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.
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 224.3, 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.(3) The use of, or sale to, not more than a specified number of entities per generation system.(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.
2868. The following definitions shall apply for purposes of this article:
###### 2868.
(a) Electric utility means an electrical corporation as defined in Section 218, a local publicly owned electric utility as defined in Section 224.3, 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.
(3) The use of, or sale to, not more than a specified number of entities per generation system.
(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.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 5.