The purpose of this chapter is to authorize establishment of
the regulatory framework for the leasehold marketing of solar energy
devices within the city of Palm Springs.
California law currently encourages the leasehold marketing
of solar energy devices within the state of California by providing
tax credits to California taxpayers who lease such devices from a
municipal utility or from any lessor granted a permit from a municipal
solar utility. Upon the establishment of the Palm Springs municipal
solar utility residents of Palm Springs who lease solar energy devices
through such utility should be able to obtain such tax credits. However,
as legal title to such solar energy devices is held by a person other
than the resident-user, the latter is particularly susceptible to
harm caused by consumer deception, safety hazards and the interruption
of service. To help prevent such harm from occurring and to promote
the economic feasibility of solar energy use within the city of Palm
Springs, leasehold interests in solar energy devices may be marketed
within the city's jurisdiction by complying with the provisions of
this chapter and any rules and regulations promulgated by the city
manager or city council of the city of Palm Springs to implement any
provisions of this chapter. Persons not participating in the municipal
solar utility are not subject to any of the procedures and provisions
of this chapter.
(Ord. 1168 § 2, 1982)
The following definitions apply to those persons who will be participating in the municipal solar utility. When used in this chapter or Chapter
8.30 of this code, unless the context otherwise requires:
"City"
means the city of Palm Springs.
"Energy office" or "office"
means the office, under the direction of the city manager,
responsible for managing the Palm Springs municipal solar utility
and performing the city's obligation under Title 1 or Title 2 of this
code.
"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 possessed by the lessee, which is affixed to or located at and
servicing the real property owned or occupied by the lessee.
"Lease arrangement installer" or "installer"
means any person, properly licensed under the provisions
of the California Contractors License Law, including any solar specialty
license, installing, removing or servicing solar energy devices subject
to a lease arrangement.
"Lessee"
means any person leasing a solar energy device on or affixed
to the real property owned or occupied by such person.
"Management company"
means any person serving an agent of an investor for purposes
of collecting leasehold payments, making payments for obligations
incurred in lease arrangements, and maintaining accounting records
or collections and payments for solar energy devices.
"Municipal solar utility" or "MSU"
means a program conducted by a local government or its authorized
agent to promote the utilization of renewable energy and energy conservation
technologies.
"Permittee"
means any leasing company, installer or installation company,
or management company that has complied with all necessary requirements
and obtained a permit to participate in the MSU solar leasing program.
"Person"
means any natural person, partnership, corporation, business
trust, association, company or other legal entity.
"Solar energy device"
includes equipment and materials (and parts solely related
to the functioning of such equipment) that is intended to be or located
on or affixed to real property within the city of Palm Springs and
that uses solar energy directly to (i) generate electricity; (ii)
heat or cool a building or structure; (iii) provide hot water for
domestic service, recreational, or therapeutic purposes; or (iv) provide
process heat or mechanical energy. Generally, these functions are
accomplished through the use of equipment such as collectors (to absorb
sunlight and create hot liquids or air), thermostats (to activate
pumps or fans which circulate the hot liquids or air), and heat exchangers
(to utilize hot liquids or air to create hot air or water).
"Tax incentives"
means California or federal investment tax credits, solar
tax credits, accelerated depreciation, tax deferral and other tax
benefits accruing through the leasehold of solar energy devices under
existing state and federal tax law.
(Ord. 1168 § 2, 1982)
If any provision of this chapter and Chapter
8.30 or their application to any person or circumstances is held invalid, the invalidity does not affect other provisions or application of this chapter and Chapter
8.30 which can be given effect without the invalid provision or application, and to this end the provisions of this chapter and Chapter
8.30 are severable.
(Ord. 1168 § 2, 1982)