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The Santa Cruz Area Chamber of Commerce is proud to announce our support for AB 1104 (Pellerin): The Small Business Renewable Energy Access and Protection Act, a bill that will make it easier and more affordable for small businesses to install solar energy while continuing to uphold strong worker protections. Right now, because of changes made under a previous law (AB 2143), even small rooftop solar installations are classified as public works projects. This means small business owners must take on the same heavy administrative and legal responsibilities as a government agency. Tasks like registering with the Department of Industrial Relations, managing compliance oversight, and handling formal contract specifications have placed a huge and often overwhelming burden on small businesses. AB 1104 offers a smart solution. The bill makes important updates to the Public Utilities Code to better support small-scale renewable energy projects under one megawatt. It would: > Clarify that small businesses hiring licensed contractors to install solar are not considered "awarding bodies," removing complex compliance duties that were never intended for private small business owners. > Maintain prevailing wage and apprenticeship standards for contractors to ensure that workers continue to be paid and trained fairly. > Protect small business owners from penalties tied to contractor mistakes, allowing contractors a 90-day period to fix any violations and pay any owed wages before any fines are issued. > Preserve eligibility for valuable energy programs like net energy metering (NEM) and net billing, even if a contractor error occurs, as long as it's corrected within the cure period. > Expand the definition of "independent solar energy producer," allowing a single solar system to serve up to 20 entities (like tenants in a business complex) without triggering full utility regulation - making shared clean energy more feasible. Why AB 1104 Matters California has set ambitious clean energy goals, and small businesses want to be part of the solution. But the unintended consequences of AB 2143 have made it unnecessarily difficult and expensive for small business owners to go solar. AB 1104 strikes the right balance—protecting workers while removing barriers that have held businesses back. It also better aligns California’s policies with federal clean energy initiatives under the Inflation Reduction Act. Supporting bills like AB 1104 means: > Lower energy costs for small businesses. > More investment in local clean energy infrastructure. > Strong protections for workers. > A boost to our regional economy and environment. James Allen, CEO of Allterra Solar, a leader in Santa Cruz’s solar industry, shared why this bill matters to local businesses: “The current rules have created unnecessary barriers for small businesses that want to add solar to their building. At Allterra Solar, we've had to shift our focus away from commercial projects because of the added red tape. AB 1104 would help remove those obstacles and make it more practical and affordable for local businesses - like your neighborhood dentist or corner market - to install solar and reduce their energy costs. It's a step in the right direction for clean energy and economic common sense." The bill recently passed the Assembly Labor and Employment Committee and is now moving forward to the Utilities and Energy Committee. The Chamber will continue to advocate for its passage as it advances through the legislative process. About Chamber Advocacy The Santa Cruz Area Chamber of Commerce is the only Chamber in the county that offers direct advocacy services for its members and local organizations. We believe advocacy is a critical part of strengthening our business community and ensuring that local voices are heard at all levels of government. We invite Chamber members and community organizations to submit an Advocacy Request Form if you would like the Chamber to consider taking a position on an issue, project, or piece of legislation. Here’s how the process works: > Chamber member requests are automatically reviewed by our Board of Directors. > Non-member requests go through a two-step Board vote: first, the Board votes on whether to consider the issue; then, if approved, the Board votes on whether to officially adopt a position. We take this responsibility seriously - every advocacy position is thoughtfully vetted to ensure it aligns with the Chamber’s mission to support a vibrant, inclusive, and resilient economy in Santa Cruz County. To submit a request, please fill out our advocacy request form, here.
The Santa Cruz Area Chamber of Commerce is proud to announce our support for AB 1104 (Pellerin): The Small Business Renewable Energy Access and Protection Act, a bill that will make it easier and more affordable for small businesses to install solar energy while continuing to uphold strong worker protections.
Right now, because of changes made under a previous law (AB 2143), even small rooftop solar installations are classified as public works projects. This means small business owners must take on the same heavy administrative and legal responsibilities as a government agency. Tasks like registering with the Department of Industrial Relations, managing compliance oversight, and handling formal contract specifications have placed a huge and often overwhelming burden on small businesses.
AB 1104 offers a smart solution.
The bill makes important updates to the Public Utilities Code to better support small-scale renewable energy projects under one megawatt. It would:
> Clarify that small businesses hiring licensed contractors to install solar are not considered "awarding bodies," removing complex compliance duties that were never intended for private small business owners. > Maintain prevailing wage and apprenticeship standards for contractors to ensure that workers continue to be paid and trained fairly. > Protect small business owners from penalties tied to contractor mistakes, allowing contractors a 90-day period to fix any violations and pay any owed wages before any fines are issued. > Preserve eligibility for valuable energy programs like net energy metering (NEM) and net billing, even if a contractor error occurs, as long as it's corrected within the cure period. > Expand the definition of "independent solar energy producer," allowing a single solar system to serve up to 20 entities (like tenants in a business complex) without triggering full utility regulation - making shared clean energy more feasible. Why AB 1104 Matters
California has set ambitious clean energy goals, and small businesses want to be part of the solution. But the unintended consequences of AB 2143 have made it unnecessarily difficult and expensive for small business owners to go solar. AB 1104 strikes the right balance—protecting workers while removing barriers that have held businesses back. It also better aligns California’s policies with federal clean energy initiatives under the Inflation Reduction Act. Supporting bills like AB 1104 means:
> Lower energy costs for small businesses. > More investment in local clean energy infrastructure. > Strong protections for workers. > A boost to our regional economy and environment.
James Allen, CEO of Allterra Solar, a leader in Santa Cruz’s solar industry, shared why this bill matters to local businesses:
“The current rules have created unnecessary barriers for small businesses that want to add solar to their building. At Allterra Solar, we've had to shift our focus away from commercial projects because of the added red tape. AB 1104 would help remove those obstacles and make it more practical and affordable for local businesses - like your neighborhood dentist or corner market - to install solar and reduce their energy costs. It's a step in the right direction for clean energy and economic common sense."
The bill recently passed the Assembly Labor and Employment Committee and is now moving forward to the Utilities and Energy Committee. The Chamber will continue to advocate for its passage as it advances through the legislative process.
About Chamber Advocacy
The Santa Cruz Area Chamber of Commerce is the only Chamber in the county that offers direct advocacy services for its members and local organizations. We believe advocacy is a critical part of strengthening our business community and ensuring that local voices are heard at all levels of government.
We invite Chamber members and community organizations to submit an Advocacy Request Form if you would like the Chamber to consider taking a position on an issue, project, or piece of legislation.
Here’s how the process works:
> Chamber member requests are automatically reviewed by our Board of Directors. > Non-member requests go through a two-step Board vote: first, the Board votes on whether to consider the issue; then, if approved, the Board votes on whether to officially adopt a position.
We take this responsibility seriously - every advocacy position is thoughtfully vetted to ensure it aligns with the Chamber’s mission to support a vibrant, inclusive, and resilient economy in Santa Cruz County.
To submit a request, please fill out our advocacy request form, here.