California has a policy to promote the growth of clean energy and to that end they have enacted California Civil Code § 714. That section expressly states that “any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.” (Cal. Civ. Code § 714(a).) However, section 714 goes on to say that it is inapplicable to “reasonable restrictions on solar energy systems.” (Id.) “Reasonable” in this case is defined as “those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance.” (Id.)

Solar energy systems in California must meet any applicable health and safety standards and any “requirements imposed by State and local permitting authorities.” (Id.) If the system is being used for heating water in homes or for commercial uses it “shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.” (Id.)

Homeowners have faced litigation for having provisions in their bylaws which restrict or create an obstacle to the installation of solar panels. A homeowner can "sue the association for damages and an injunction to compel the association to enforce the provisions of the declaration." (Lamden v. La Jolla Shores Clubdominium Homeowners Assn. 21 Cal.4th 249, 268 (1999).) But, "any unlawful object contained within a contract is void and unenforcable. (Cal. Civ. Code § 1599.)

Geothermal Energy

California has only one of two locations in the world (San Francisco and Lardello, Italy) where a “high-temperature, dry steam resource is found that can be directly used to move turbines and generate electricity.”

For a thermal energy plant to be created any and all developers must obtain siting approval and licensing from the California Energy Commission (hereinafter “CEC”) if the generating capacity of the plant is 50 MW or more. (Megawatts) “The county [in which the plant will be located] must demonstrate a capability to expeditiously process applications and their policies must be consistent with CEC’s policies for the development of geothermal resources. (Cal. Pub. Res. Code § 25522.) The CEC will also conduct an environmental review to make sure the plant will meet the requirements of the California Environmental Quality Act. The CEC also offers a Small Power Plant Exemption that will relieve the developers of the licensing process for any thermal plant between 50 and 100 MW but they are still responsible for any other state, local, or federal permits needed.

Any developer of a thermal plant that qualities as a “public utility” must receive a Certificate of Public Convenience and Necessity before construction of “a facility with a net generating capacity over 50 MW. A public utility includes an “electric corporation…where the service is performed for, or commodity is delivered to, the public or any portion thereof.” (Cal. Pub. Util. Code § 216.) An electric corporation for purposes of the statute is defined as “every corporation or person owning, controlling, operating, or managing any electric plant for compensation within this state, except where electricity is generated on or distributed by the producer through private property solely for its own use or the use of its tenants and not for sale or transmission to others.” (Cal. Pub. Util. Code § 218.)

Permits are dependent on the power plant’s “location, size, type of customer the power plant sells energy to, and whether the power plant sells energy in ‘interstate commerce.’”

(All information for hydroelectric energy comes from the Regulatory and Permitting Information Desktop Toolkit [RAPID])

Hydroelectric/Hydropower Energy

California generated about 7 percent of its electricity from the 251 hydroelectric facilities operating within the state. There are three types of hydroelectric facilities operating in California including “run-of-river, dam, and pumped storage facilities.” Any facilities producing less than 30 MW of power are referred to as small hydropower and are require by the state to be certified for the net mw hours to count according to “renewable energy portfolio” standards.

The larger facilities in California are operated by the Bureau of Reclamation and the California Department of Water Resources and most of the hydroelectric facilities are located in the “eastern mountain ranges” with a “total dependable capacity of 21,000 MW.

“California has a hybrid surface water law system, containing elements of both riparian and prior appropriation water rights. In times of shortages, riparian rights are superior to appropriative rights, and later appropriators are subordinate to prior appropriators. The SWRCB regulates the appropriation of surface water and subterranean streams (23 CCR § 655.), while CDFW protects stream and lakebeds pursuant to California Fish and Game Code [§] 1602. The SWRCB also regulates groundwater pursuant to the Sustainable Management Act of 2014.”

(All information for hydroelectric energy comes from the Regulatory and Permitting Information Desktop Toolkit [RAPID])