‘‘(B) EQUIVALENT OR GREATER ACCESS.— 
Nothing in this Act precludes a State from 
adopting or enforcing incentives or require-
ments to encourage qualified generation and net 
metering that— 
‘‘(i) are in addition to or equivalent to 
incentives or requirements under section 
113; or 
‘‘(ii) afford greater access to the elec-
tric power transmission and local distribu-
tion systems by qualified generators (as 
defined in section 113) or afford greater 
compensation or credit for electricity gen-
erated by the qualified generators.’’. 
SEC. 4. CONTRACTS FOR RENEWABLE ENERGY FOR EXECU-
TIVE AGENCIES. 
Section 501(b)(1)(B) of title 40, United States Code, 
is amended— 
(1) by striking ‘‘A contract’’ and inserting the 
following: 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), a contract’’; and 
(2) by adding at the end the following: 
‘‘(ii) RENEWABLE
ENERGY.—A con-
tract for renewable energy (as defined in 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
section 203(b) of the Energy Policy Act of 
2005 (42 U.S.C. 15852(b))) may be made 
for a period of not more than 30 years.’’. 
SEC. 5. SOLAR ENERGY SYSTEMS BUILDING PERMIT RE-
QUIREMENTS FOR RECEIPT OF COMMUNITY 
DEVELOPMENT BLOCK GRANT FUNDS. 
Section 104 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5304) is amended by adding 
at the end the following new subsection: 
‘‘(n) REQUIREMENTS FOR BUILDING PERMITS RE-
GARDING SOLAR ENERGY SYSTEMS.— 
‘‘(1) IN GENERAL.—A grant under section 106 
for a fiscal year may be made only if the grantee 
certifies to the Secretary that— 
‘‘(A) in the case of a grant under section 
106(a) for any Indian tribe or insular area, 
during such fiscal year the cost of any permit 
or license, for construction or installation of any 
solar energy system for any structure, that is 
required by the tribe or insular area or by any 
other unit of general local government or other 
political subdivision of such tribe or insular 
area, complies with paragraph (2); 
‘‘(B) in the case of a grant under section 
106(b) for any metropolitan city or urban coun-
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
ty, during such fiscal year the cost of any per-
mit or license, for construction or installation of 
any solar energy system for any structure, that 
is required by the metropolitan city or urban 
county, or by any other political subdivision of 
such city or county, complies with paragraph 
(2); and 
‘‘(C) in the case of a grant under section 
106(d) for any State, during such fiscal year 
the cost of any permit or license, for construc-
tion or installation of any solar energy system 
for any structure, that is required by the State, 
or by any other unit of general local govern-
ment within any nonentitlement area of such 
State, or other political subdivision within any 
nonentitlement area of such State or such a 
unit of general local government, complies with 
paragraph (2). 
‘‘(2) LIMITATION ON COST.—The cost of permit 
or license for construction or installation of any 
solar energy system complies with this paragraph 
only if such cost does not exceed the following 
amount: 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
‘‘(A) RESIDENTIAL STRUCTURES.—In the 
case of a structure primarily for residential use, 
$500. 
‘‘(B) NONRESIDENTIAL STRUCTURES.—In 
the case of a structure primarily for nonresiden-
tial use, 1.0 percent of the total cost of the in-
stallation or construction of the solar energy 
system, but not in excess of $10,000. 
‘‘(3) NONCOMPLIANCE.—If the Secretary deter-
mines that a grantee of a grant made under section 
106 is not in compliance with a certification under 
paragraph (1)— 
‘‘(A) the Secretary shall notify the grantee 
of such determination; and 
‘‘(B) if the grantee has not corrected such 
noncompliance before the expiration of the 6- 
month period beginning upon notification under 
subparagraph (A), such grantee shall not be eli-
gible for 5 percent of any amounts awarded 
under a grant under section 106 for the first 
fiscal year that commences after the expiration 
of such 6-month period. 
‘‘(4) SOLAR ENERGY SYSTEM.—For purposes of 
this subsection, the term ‘solar energy system’ 
means, with respect to a structure, equipment that 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
uses solar energy to generate electricity for, or to 
heat or cool (or provide hot water for use in), such 
structure.’’. 
SEC. 6. PROHIBITION OF RESTRICTIONS ON RESIDENTIAL 
INSTALLATION OF SOLAR ENERGY SYSTEM. 
(a) REGULATIONS.—Within 180 days after the enact-
ment of this Act, the Secretary of Housing and Urban 
Development, in consultation with the Secretary of En-
ergy, shall issue regulations— 
(1) to prohibit any private covenant, contract 
provision, lease provision, homeowners’ association 
rule or bylaw, or similar restriction, that impairs the 
ability of the owner or lessee of any residential 
structure designed for occupancy by 1 family to in-
stall, construct, maintain, or use a solar energy sys-
tem on such residential property; and 
(2) to require that whenever any such covenant, 
provision, rule or bylaw, or restriction requires ap-
proval for the installation or use of a solar energy 
system, the application for approval shall be proc-
essed and approved by the appropriate approving en-
tity in the same manner as an application for ap-
proval of an architectural modification to the prop-
erty, and shall not be willfully avoided or delayed. 
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS
(b) CONTENTS.—The regulations required under sub-
section (a) shall provide that— 
(1) such a covenant, provision, rule or bylaw, or 
restriction impairs the installation, construction, 
maintenance, or use of a solar energy system if it— 
(A) unreasonably delays or prevents instal-
lation, maintenance, or use; 
(B) unreasonably increases the cost of in-
stallation, maintenance, or use; or 
(C) precludes use of such a system; and 
(2) any fee or cost imposed on the owner or les-
see of such a residential structure by such a cov-
enant, provision, rule or bylaw, or restriction shall 
be considered unreasonable if— 
(A) such fee or cost is not reasonable in 
comparison to the cost of the solar energy sys-
tem or the value of its use; or 
(B) treatment of solar energy systems by 
the covenant, provision, rule or bylaw, or re-
striction is not reasonable in comparison with 
treatment of comparable systems by the same 
covenant, provision, rule or bylaw, or restric-
tion. 
(c) SOLAR ENERGY SYSTEM.—For purposes of this 
section, the term ‘‘solar energy system’’ means, with re-
VerDate Nov 24 2008 
00:49 Jun 18, 2009
Jkt 079200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2895.IH
H2895
tjames on PRODPC75 with BILLS