Bill Text: CA AB792 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Utility user tax: exemption: distributed generation systems.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-10-04 - Chaptered by Secretary of State - Chapter 534, Statutes of 2013. [AB792 Detail]

Download: California-2013-AB792-Amended.html

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BILL NUMBER: AB 792	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 29, 2013
	AMENDED IN SENATE  JULY 9, 2013
	AMENDED IN SENATE  JUNE 25, 2013
	AMENDED IN ASSEMBLY  MAY 6, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

INTRODUCED BY   Assembly Member Mullin
   (Principal coauthor: Senator Hill)

                        FEBRUARY 21, 2013

   An act to add  and repeal  Section 7284.5  to
  of  the Revenue and Taxation Code, relating to
taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 792, as amended, Mullin. Utility user tax: exemption:
distributed generation systems.
   Existing law generally provides that the legislative body of any
city and any charter city may make and enforce all ordinances and
regulations with respect to municipal affairs, as provided,
including, but not limited to, a utility user tax on the consumption
of gas and electricity. Existing law provides that the board of
supervisors of any county may levy a utility user tax on the
consumption of, among other things, gas and electricity in the
unincorporated area of the county.
   This bill would  , until January 1, 2020,  exempt from
any utility user tax imposed by a local jurisdiction, as defined, the
consumption of electricity generated by a  renewable
distributed generation system that is installed before January 1,
2020,   clean energy resource, as defined,  for the
 exclusive  use of a single customer  or the
customer's tenants  .
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7284.5 is added to the Revenue and Taxation
Code, to read:
   7284.5.  (a) For the purposes of this section,  "local
  the following terms have the following meanings: 

    (1)     "   Local 
jurisdiction" means any city, county, city and county, including any
chartered city, county, or city and county, district, or public or
municipal corporation. 
   (2) "Clean energy resource" means either of the following: 

   (A) A device or technology used for a renewable electrical
generation facility, as set forth in paragraph (1) of subdivision (a)
of Section 25741 of the Public Resources Code.  
   (B) A technology that meets all of the following requirements:
 
   (i) The emissions standards adopted by the State Air Resources
Board pursuant to the distributed generation certification program
requirements of Article 3 (commencing with Section 94200) of
Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the California
Code of Regulations.  
   (ii) Produces de minimis emissions of sulfur oxides and nitrogen
oxides.  
   (iii) The greenhouse gases emission performance standard
established by the Public Utilities Commission pursuant to Section
8341 of the Public Utilities Code.  
   (iv) Has a total electrical efficiency of no less than 45 percent.
 
   (v) Is sized to meet the generator's onsite electrical demand.
 
   (vi) Has parallel operation to the electrical distribution grid.
 
   (vii) Utilizes renewable or nonrenewable fuel.  
   (viii) Pays any applicable utility users tax for nonrenewable
fuels used in electricity generation. 
   (b)    (   1)  There is exempt from any
utility user tax on the consumption of electricity, imposed by any
local jurisdiction, a customer's consumption of electricity generated
by a  renewable distributed generation system that is
installed before January 1, 2020, for the exclusive use of a single
customer.   clean energy resource that is located on the
customer's premises and used solely for the customer or the
 customer's tenants.  
   (2) This section does not exempt from any utility users tax
imposed by any local jurisdiction any electricity or gas, not
described in paragraph (1), that is provided to a customer by an
electrical corporation, publicly owned utility, electrical
cooperative, or irrigation district.  
   (c) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date. 
  SEC. 2.  The Legislature finds and declares that exempting the
consumption of electricity generated by a  renewable
distributed generation system   clean energy resource,
 that is installed for the exclusive use of a single customer
 , or the customer's tenants,  from local utility user taxes
will ensure statewide uniformity and fairness in the overall
imposition of the utility user tax. Therefore, exempting from utility
user taxes the consumption of electricity generated by a 
renewable distributed generation system   clean energy
resource,  that is installed for the exclusive use of a single
customer is a matter of statewide concern, and not a municipal
affair, as that term is used in Section 5 of Article XI of the
California Constitution.