How to Request an AB 2143 Exemption for Solar Projects

Why AB 2143 Exemption Requests Matter for Payroll and Compliance

How to request an AB 2143 exemption is a critical process for solar contractors trying to determine whether prevailing wage requirements apply to their projects.

If your project qualifies for an AB 2143 exemption and you do not request it, you may unnecessarily take on prevailing wage obligations, certified payroll reporting, and compliance costs. If you assume you qualify but do not follow the proper process, you risk non-compliance with California Public Utilities Commission requirements.

Understanding how the exemption process works helps protect your business from both overpaying and under-complying.

Key Definitions You Should Know

Assembly Bill 2143: A California law that requires certain solar and energy storage projects to comply with prevailing wage requirements.

Prevailing Wage: The required wage and fringe benefits for workers on qualifying public or regulated projects.

Interconnection Application: A formal request submitted to a utility company to connect a project to the grid.

SURGE: Solar-Utilities Reporting, Guidance, and Education, which manages compliance and exemption review processes for applicable projects.

Step-by-Step Process to Request an AB 2143 Exemption

1. Identify If Your Project May Qualify

Start by reviewing whether your project meets one of the recognized exemption scenarios.

Your project may qualify if:

• Work began in 2023 or earlier and continued into 2024, with an interconnection application approved by December 31, 2023
• The project was completed in 2023, with an application submitted in 2023, but still pending in 2024
• The project was completed in 2023, but the interconnection application was submitted in 2024
• The contract was executed, and work started in 2023 but was extended into 2024, with the application submitted later
• The project is located on tribal land, which may be exempt depending on confirmation

If your situation does not match these exactly, you may still request a case-by-case review with supporting explanation.

2. Contact the SURGE Team

Once you determine your project may qualify, you must contact the SURGE team directly.

Send your request to: info@cpucsurge.org.

This step officially starts the exemption review process.

3. Submit a Complete Exemption Request

Your request must include specific details to be reviewed properly.

Include:

• Project name and “Exemption Request” in the subject line
• The exemption category you believe applies
• Verifiable documentation such as executed contracts or timelines

Incomplete requests can delay the review process.

4. Respond to Follow-Up Requests

After submission, the SURGE team may:

• Request clarification
• Ask for additional documentation
• Verify timelines or project details

Timely responses help move your request forward.

5. Review Outcome and Next Steps

Once a decision is made, SURGE will:

• Confirm whether your project qualifies for exemption
• Provide next steps based on the decision

If approved, you may not need to comply with prevailing wage requirements. If denied, you must ensure full compliance moving forward.

Practical Tips for a Smooth Exemption Process

• Gather contracts and timelines before submitting your request
• Double-check interconnection application dates
• Clearly explain any unique project circumstances
• Keep copies of all communications and documents

Accurate documentation is the most important factor in a successful exemption request.

Common Mistakes Contractors Make

• Assuming exemption without submitting a request
• Providing incomplete or unclear documentation
• Misunderstanding interconnection timelines
• Delaying the request until compliance deadlines approach

These mistakes can lead to unnecessary compliance costs or violations.

What Solar Contractors Need to Do Next

If your project may fall under AB 2143, you should not wait to evaluate your status.

Determine whether you qualify for an exemption, submit your request early, and document everything carefully. If your project does not qualify, you must be prepared to meet prevailing wage and certified payroll requirements.

Many contractors use systems like eBacon to track wage requirements, manage certified payroll, and maintain compliance records when exemptions do not apply.

See how eBacon simplifies prevailing wage compliance and reporting. Book a quick demo.

Frequently Asked Questions About AB 2143 Exemptions

What is an AB 2143 exemption?

An AB 2143 exemption allows certain solar projects to avoid prevailing wage requirements if they meet specific timing and application criteria.

Who determines if a project qualifies for exemption?

The SURGE team reviews exemption requests and determines eligibility based on project details and documentation.

What documents are required for an exemption request?

You should provide executed contracts, project timelines, and interconnection application details to support your request.

What happens if my project does not qualify?

If your project does not qualify, you must comply with prevailing wage laws and submit certified payroll records through the appropriate system.