Net energy metering: construction of renewable electrical generation facilities: public works project requirements.

Header changed from enrolled bill format (with Assembly/Senate passage dates and clerk signatures) to chaptered law format with 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' and Chapter 632 designation.

All statutory text in Section 769.2 and Section 2 is substantively identical; only line breaks and page layout changed to match the chaptered publication format.

The document was reformatted from an official chaptered legislative PDF-style layout (with page numbers like '93', centered headers, and em-dash separators) to a web page display format that includes website navigation elements (home, FAQ, sitemap, login), search functionality, bill version history links, and share options. The underlying statutory text of Section 769.2 of the Public Utilities Code is unchanged.

Corrected duplicate word 'records records' to 'records' in subdivision (b)(3), which requires contractors to submit biannual certified payroll records to the commission.

Corrected 'shall be remain eligible' to 'shall remain eligible' in subdivision (d), which preserves a facility's NEM eligibility after a willful wage violation if restitution and penalties are paid.

Removed an empty subdivision (5) under section (f) that contained no text, likely a drafting artifact from earlier amendments.

The entire subdivision (g)(1) providing a special safe harbor for nonresidential photovoltaic facilities under 1 megawatt was deleted. This removed: the 90-day cure period for technical or unintentional wage violations, the provision that such facilities remain eligible for net energy metering regardless of willful violations, and the rule that penalties accrue only to the contractor and not to the entity that hired them.

Section 769.2(d) was reversed from disqualifying a facility from net energy metering service after a willful violation to instead keeping the facility eligible if restitution is made to affected workers and all penalties and fines are paid. This makes the consequence of a willful violation less severe for the project owner.

The 'not an awarding body' provision moved from being limited to nonresidential PV projects under 1 megawatt (old subdivision g(1)(A)) to applying broadly as subdivision (f)(5) to all entities that engage contractors on any covered renewable electrical generation facility. This means more project owners are exempted from certain public works requirements.

The legislative intent section was simplified from three separate policy goals (encouraging investment via tailored exemptions, providing cure periods aligned with federal law, and clarifying the 20-entity threshold) to a single statement focused on accelerating clean energy goals through the 20-entity clarification.

Removed the amendment to Public Utilities Code Section 2868, which would have expanded the definition of 'independent solar energy producer' to allow generation for use or sale to up to 20 entities per generation system (up from 2). This was the bill's primary mechanism for enabling small commercial solar projects to operate without public utility regulation.

Removed the formal bill title 'Small Business Renewable Energy Access and Protection Act' and all legislative findings regarding California's commercial solar market challenges, federal alignment with the Inflation Reduction Act, and the stated intent to accelerate clean energy goals.

Added new subdivision (g)(2) specifying that the contractor who enters into a contract with the entity for renewable energy construction is the 'awarding body' only for the limited purposes of Labor Code Section 1773.3 (the requirement to provide notice to the Department of Industrial Relations within 30 days of contract award). This narrows the contractor's obligations under public works law to just that single notice requirement.

Moved the 'not an awarding body' provision from subdivision (f)(5) to a new standalone subdivision (g)(1), and added language specifying it applies to work on both the renewable electrical generation facility AND associated battery storage.

Added specification that biannual certified payroll records submitted to the commission must be 'in a format consistent with systems used for compliance with Section 1776 of the Labor Code.'

The bill was renamed the 'Small Business Renewable Energy Access and Protection Act' and expanded from a single intent statement to multiple sections amending Sections 769.2 and 2868 of the Public Utilities Code.

New exemptions are clarified: residential facilities of 15 kW or less, single-family home installations, projects already qualifying as public works under Labor Code Section 1720, and facilities serving only modular homes or multiunit housing with two or fewer stories are excluded from the prevailing wage requirements.

For nonresidential photovoltaic facilities under 1 MW, the entity that hired the contractor is no longer considered an 'awarding body' under Labor Code Section 1722, meaning certain public works project requirements (like withholding and retaining wage penalty amounts) do not apply to them.

Sub-1 MW nonresidential photovoltaic facilities remain eligible for net metering service (NEM 1.0, NEM 2.0, or net billing tariff) even if a willful wage violation was enforced against the contractor, removing the automatic disqualification that previously applied.

A 90-calendar-day cure period is provided for technical or unintentional prevailing wage violations by contractors on sub-1 MW nonresidential solar projects. If the contractor cures the violation and provides evidence to the Department of Industrial Relations, no penalty is imposed.

Penalties for contractor noncompliance with prevailing wage requirements on sub-1 MW projects accrue only to the contractor, not to the entity that engaged the contractor.

Contractors on renewable electrical generation facilities must submit biannual certified payroll records (July 1 and December 31) to the California Public Utilities Commission, which retains them as public records for five years.

The definition of 'independent solar energy producer' in Section 2868 is expanded to allow a solar producer to generate electricity for use of, or sale to, not more than a specified number of entities per generation system (the legislative findings reference 20 entities), up from the prior limit of 2 other entities.

The fiscal committee designation changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes,' reflecting that the bill now imposes enforceable requirements that create a state-mandated local program with potential reimbursement implications.