Chapter 15.38 — MUNICIPAL SOLAR UTILITY PROGRAM

The city council of San José, California, hereby makes the following findings:

A.

The residents of the City of San José face the certainty of continued escalating prices for home energy supplies and continued dependence upon imported sources of energy.

B.

Solar energy has been found to be an inexhaustible, reliable and nonpolluting energy resource that can contribute to the public health, safety and welfare of the citizens of San José by lessening dependence upon nonrenewable and imported sources of energy.

C.

The high initial cost of purchasing and installing a solar energy device is the primary economic barrier to expanded solar energy use. Leasing of solar energy devices has proven to be an effective means to reduce this economic barrier and may be an attractive economic alternative to ownership for many consumers.

D.

The legislature amended Section 17052.5 and Section 23601 of the California Revenue and Taxation Code to provide certain specified tax credits to taxpayers who partially own and partially lease a solar energy system from any lessor granted a permit from a municipal solar utility established by ordinance of the local jurisdiction prior to January 1, 1983.

E.

The establishment of a municipal solar utility program can increase public awareness of solar energy alternatives and lead to a greater degree of consumer protection and consumer confidence in leasing solar energy systems, thus substantially increasing the use of solar energy within the City of San José.

(Ord. 21188.)

It is the intent of this chapter to establish a municipal solar utility within the City of San José, California, for the purpose of satisfying the requirements contained in Section 17052.5 or Section 23601 of the California Revenue and Tax Code, and for the purpose of facilitating the leasing of solar energy equipment and to establish regulatory authority for any solar leasing operation that may be conducted under the program.

(Ord. 21188.)

Part 2 - DEFINITIONS

Unless the context otherwise requires, the words and phrases shall have the following meanings and shall govern the construction of this Chapter 15.38.

(Ord. 21188.)

A "municipal solar utility (MSU)" shall mean any program conducted by a local government or its authorized agent to promote the utilization of renewable energy and energy conservation technologies through educational, consumer protection or financial assistance programs.

(Ord. 21188.)

A "solar lease arrangement" means a contract between a lessee and an investor for the leasing of solar energy devices, owned by the investor and leased and used by the lessee, which is affixed to or located at and servicing the real property owned or occupied by the lessee.

(Ord. 21188.)

"Leasing company" shall mean any person advertising, marketing, placing and arranging, pursuant to a lease arrangement, for installation and servicing of solar energy devices for a fee.

(Ord. 21188.)

"Solar energy device" shall include equipment and materials that are intended to be located on or affixed to real property that use solar energy directly to:

A.

Heat or cool a building or structure;

B.

Provide domestic hot water or hot water for recreational or therapeutic purposes;

C.

Provide process heat or mechanical energy;

D.

Generate electricity.

(Ord. 21188.)