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Although technological advances will no doubt continue in the field of photovoltaic research, these improvements most likely will occur incrementally. Meanwhile, the incentive program for the State is in its third stages -each stage translates into lower incentives for the consumer. Given that installation of solar panels begins generating energy immediately, waiting may not be an advantage for the homeowner. In other words, a more advance or less expensive PV system may not offset the combination of lower energy bills coupled with reduced incentives. Some elements that are not components of the proposed Solar Cities Program at this time are discussed below: Permit fees • Comments have been received regarding the possible lowering or elimination of current fees related to the installation of PV panels. At $300 fora 2.0 kW system, Pleasanton (and Livermore) fees are among the lowest in the State. Consideration to modify the fee amount may be addressed as part of the City's Comprehensive Fee Study that is currently underway. The anticipated date for presentation of this item to Council is in Spring 2008. Financial assistance • Some solar programs incorporate financial assistance through local institutions. Although this is not an element of Pleasanton's program at this time, financial support for the homeowner may be explored at a later time. City recognition • The SEI report recommended City recognition for projects that achieve a pre- determined level of excellence and developing an emblem for display when projects have participated in the Solar Cities Program or otherwise made significant strides in incorporating energy efficiencies. This may be pursued once the existing residential solar program has been implemented. Municipal PV Projects SEI listed municipal PV projects as one of the market segments that would benefit from solar programs. The City has demonstrated its support for solar energy projects through its own facilities as follows: • Pleasanton Fire Station #4 incorporated many state of the art green features and attained the USGBC LEEDT"" Certified "Gold" standard. This was the first municipal building constructed following the Pleasanton's adoption of a commercial Green Building Ordinance. In addition to the energy benefits from its passive solar design, 20% of the energy needs for the building are met by a 12.8 kW photovoltaic solar power (and vehicle shading) system. Page 5 of 6