HB2033 - 571R

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

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

START_STATUTE9-468. Solar construction permits; standards; online instant permitting process; suspension; remote field reports; municipal report; applicability; immunity; definitions

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

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

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

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

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

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

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

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

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

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

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

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

b. on or before january 1, 2027, a municipality shall adopt an Instant Permitting Process for Home Power Installations. The online instant permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a municipality shall allow all home power installations for single-family or two-family dwellings on allowed structures that can be processed by the municipality's online instant permitting process to be processed by the municipality's instant permitting process. THe instant permitting process adopted pursuant to this subsection does not require a municipality to provide instant permitting for any of the following:

1. UNpermitted structures.

2. Structures that are built before the municipality adopts building codes where the structure is located.

3. A mobile home as defined in section 33-1409.

4. Structures that do not require a permit.

5. Structures that are developed through a contractor self-issued permitting process.

C. The governing body of a municipality may adopt a resolution that CREATES A procedure to suspeND a contractor or an engineer from using the instant permitting process that is established pursuant to subsection b of this section if the municipality finds that the contractor or engineer has provided materially false information more than one time as part of a home power application or has been found by any municipality or county to have provided materially false information more than one time AS PART OF A HOME POWER APPLICATION. A resolution adopted pursuant to this subsection must include a process for C. The governing body of a municipality may adopt an ordinance or resolution that a procedure to suspect a contractor or an engineer from using the instant permitting process established by subsection b of this section if the municipality finds that the contractor or engineer has provided materially false information as part of a home power application more than one time in any municipality or county or has been found by any municipality or county to have provided materially false information more than one time as part of a home power application. An ordinance or resolution adopted pursuant to this subsection shall include a process for a suspended contractor or engineer to appeal the suspension.

D. On or before july 1, 2027, a municipality shall provide an option for home power building inspections for a single-family or two-family dwelling to be performed through a single remote field report. A single remote field report shall be offered at the same cost as or a lower cost than a municipal in-person building inspection. A single remote field report shall be available within the same time frame as or a shorter time frame than the time frame for an in-person building inspection.

E. If by July 1, 2027, the governing body of a municipality adopts a resolution that finds that an exemption is necessary to protect the public's health and safety, the municipality may exempt certain categories of home power building inspections from being performed through a single remote field report pursuant to subsection d of this section. For the exemption of certain categories of home power building inspections to continue, the governing body of the municipality shall readopt the resolution every two years.

F. The governing body of a municipality may adopt a resolution that establishes a procedure for both of the following:

1. Conducting in-person audits of remote field reports.

~~that establishes procedures for all of the following:~~

~~1. Conduct in-person audits of a remote field reports or home power installations.~~

2. suspeNDing a contractor or an engineer from requesting a remote field report pursuant to subsection D of this section if the municipality finds that the contractor or engineer has provided materially false or misleading information as part of the remote field report process or has been found by any municipality or county to have provided materially false or misleading information AS PART OF the remote field report process. A resolution adopted pursuant to this paragraph must include a process for C. The governing body of a municipality may adopt an ordinance or resolution that a procedure to suspect a contractor or an engineer from using the instant permitting process established by subsection b of this section if the municipality finds that the contractor or engineer has provided materially false information as part of a home power application more than one time in any municipality or county or has been found by any municipality or county to have provided materially false information more than one time as part of a home power application. An ordinance or resolution adopted pursuant to this subsection shall include a process for a suspended contractor or engineer to appeal the suspension.

G. A municipality may not charge a contractor or engineer for an ~~G. A municipality may not charge a contractor or engineer for an~~ in-person audit that is performed pursuant to subsection F, paragraph 1 of this section. The municipality shall track the percentage of remote field reports that the municipality in-person audit performed pursuant to subsection F, paragraph 1 of this section. The municipality shall track the percentage of remote field reports of home power installation instant permits that the municipality audits.

H. a Municipality shall post a compliance report on the municipal website and send the report to the secretary of state within thirty days after achieving compliance with subsections b and d of this section. The report shall include:

1. The date of compliance.

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

3. Confirmation that the Municipality is both:

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

(b) Allowing Home Power Building Inspections to be performed through a single remote Field Report or has adopted an ordinance that exempts certain home power building inspections pursuant to subsection e of this section.

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

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

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

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

L. A municipal employee or municipal entity is not liable for an inspection or issuance of a permit or any other approval issued pursuant to this section or failure to revoke or suspend a permit or any other approval issued pursuant to this section unless the employee's or entity's inspection, issuance, approval or failure to revoke or suspend was grossly negligent. This immunity also applies to a municipal employee or municipal entity if an injury or damage inspection, issuance of a permit or any other approval issued pursuant to this subsection or failure to revoke or suspend a permit or any other approval issued pursuant to this section unless the employee's or entity's issuance, approval or failure was grossly negligent. This immunity also applies to a municipal employee or municipal entity if an injury or damage was caused by a contractor of the municipality.

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

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

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

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

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

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

5. "Instant Permitting Process":

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

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

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

6. "Qualified online automated permitting platform" means a web-based portal that automates plan review, produces code-compliant approvals and issues permits for residential solar energy systems, residential energy storage systems and residential energy storage systems paired with residential solar energy systems, along with any associated infrastructure and equipment, and main panel upgrades and main breaker derates, in real time.

7. "Remote field report" means a home power building inspection performed by the municipality based on either of the following methods:

(a) Photos and videos taken on-site and sent to the municipality to review remotely and asynchronously.

(b) a video conference with the home power building installer or the homeowner. END_STATUTE

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

START_STATUTE11-323. Solar construction permits; standards; online instant permitting process; suspension; single remote field reports; county report; immunity; definitions

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

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

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

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

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

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

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

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

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

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

b. on or before january 1, 2027, a county shall adopt an Instant Permitting Process for Home Power Installations. The online instant permitting process must be capable of processing home power applications for at least the majority of the types of home power installations installed in this state, including applications for energy storage installations and associated infrastructure and equipment, including main panel upgrades and main breaker derates. a county shall allow all home power installations for single-family or two-family dwellings on allowed structures that can be processed by the county's online instant permitting process to be processed by the county's instant permitting process. THe instant permitting process adopted pursuant to this subsection does not require a county to provide instant permitting for any of the following:

1. UNpermitted structures.

2. Structures that are built before the county adopts building codes where the structure is located.

3. A mobile home as defined in section 33-1409.

4. Structures that do not require a permit.

5. Structures that are developed through a contractor self-issued permitting process.

C. The board of supervisors of a county may adopt a resolution that CREATES A procedure to suspeND a contractor or an engineer from using the instant permitting process that is established pursuant to subsection b of this section if the county finds that the contractor or engineer has provided materially false information more than one time as part of a home power application or has been found by any municipality or county to have provided materially false information more than one time AS PART OF A HOME POWER APPLICATION. A resolution adopted pursuant to this subsection must include a process for C. The governing body of a municipality may adopt an ordinance or resolution that a procedure to suspect a contractor or an engineer from using the instant permitting process established by subsection b of this section if the municipality finds that the contractor or engineer has provided materially false information as part of a home power application more than one time in any municipality or county or has been found by any municipality or county to have provided materially false information more than one time as part of a home power application. An ordinance or resolution adopted pursuant to this subsection shall include a process for a suspended contractor or engineer to appeal the suspension.

D. On or before july 1, 2027, a county shall provide an option for home power building inspections for a single-family or two-family dwelling to be performed through a single remote field report. A single remote field report shall be offered at the same cost as or a lower cost than a county in-person building inspection. A single remote field report shall be available within the same time frame as or a shorter time frame than the time frame for an in-person building inspection.

E. If by July 1, 2027, the board of supervisors of the county adopts a resolution that finds that an exemption is necessary to protect the public's health and safety, the county may exempt certain categories of home power building inspections from being performed through a single remote field report pursuant to subsection d of this section. For the exemption of certain categories of home power building inspections to continue, the board of supervisors shall readopt the resolution every two years.

F. The board of supervisors of a county may adopt a resolution that establishes procedures for both of the following:

1. Conducting in-person audits of remote field reports.

~~that establishes procedures for all of the following:~~

~~1. Conduct in-person audits of a remote field reports or home power installations.~~

2. suspeNDing a contractor or an engineer from requesting a remote field report pursuant to subsection D of this section if the county finds that the contractor or engineer has provided materially false or misleading information as part of the remote field report process or has been found by any municipality or county to have provided materially false or misleading information AS PART OF the remote field report process. A resolution adopted pursuant to this subsection must include a process for C. The governing body of a municipality may adopt an ordinance or resolution that a procedure to suspect a contractor or an engineer from using the instant permitting process established by subsection b of this section if the municipality finds that the contractor or engineer has provided materially false information as part of a home power application more than one time in any municipality or county or has been found by any municipality or county to have provided materially false information more than one time as part of a home power application. An ordinance or resolution adopted pursuant to this subsection shall include a process for a suspended contractor or engineer to appeal the suspension.

G. A county may not charge a contractor or engineer for an ~~G. A municipality may not charge a contractor or engineer for an~~ in-person audit performed pursuant to subsection F, paragraph 1 of this section. A county shall track the percentage of remote field reports that the county in-person audit performed pursuant to subsection F, paragraph 1 of this section. The municipality shall track the percentage of remote field reports of home power installation instant permits that the municipality audits.

H. A county shall post a compliance report on the county website and send the report to the secretary of state within thirty days after achieving compliance with subsections b and d of this section. The report shall include:

1. The date of compliance.

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

3. Confirmation that the county is both:

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

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

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

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

L. A county shall provide a copy of any home power installation permit approved and issued through the instant permitting process provided by subsection b of this section to the fire agency that has jurisdiction over the area of THE building that is the subject of the home power permit approved and issued through the instant permitting process provided by subsection b of this section to the fire agency having jurisdiction over the area of THE building that is the subject of the home power application.

m. a county employee or county entity is not liable for an inspection or issuance of a permit or any other approval issued pursuant to this section or failure to revoke or suspend a permit or any other approval issued pursuant to this section unless the employee's or entity's inspection, approval or failure to revoke or suspend was grossly negligent. this immunity also applies to a county employee or county entity if an injury or damage was caused by a contractor of the county.

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

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

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

5. "Instant Permitting Process":

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

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

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

7. "Remote field report" means a home power building inspection performed by the county based on either of the following methods:

(a) Photos and videos taken on-site and sent to the county to review remotely and asynchronously.

(b) a video conference with the home power building installer or the homeowner. END_STATUTE

Sec. 3. Delayed adoption of instant permitting process

If by July 1, 2027, the governing body of a municipality or the board of supervisors of a county adopts a resolution that shows the municipality or county is in the process of establishing an online instant permitting process for home power installations and that allows for a delay in adopting an online instant permitting process for home power installations as established by sections 9-468 and 11-323, Arizona Revised Statutes, as amended by this act, the municipality or county may delay adopting an instant permitting process for home power installations for an additional six months until not later than June 30, 2028.