This report is the statement prepared for delivery before the California State Assembly Committee on the Judiciary. California's favorable coastal climate and solar heating load, provide an ultimate potential for solar heating and cooling. The inadequacy of California's regulatory framework in facilitating and safeguarding property interests in sunlight is by no means the primary impediment to solar energy development. The relatively high cost of solar heating, and even higher cost of solar cooling deter even those potential customers who are aware of life cycle costs. Lack of a legally-protected interest in sunlight is not the primary impediment but may be a sufficient impediment to widespread solar heating and cooling outside rural and new subdivision areas. In contrast to the economic impediments to solar energy utilization, the legal impediments may be mitigated at modest cost by some combination of transferable solar energy rights (TSER's), transferable development rights (TDR's), and land use plans, zones, or contracts for solar system districts and high rise development districts.