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


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-Chaptered.html
BILL NUMBER: AB 792	CHAPTERED
	BILL TEXT

	CHAPTER  534
	FILED WITH SECRETARY OF STATE  OCTOBER 4, 2013
	APPROVED BY GOVERNOR  OCTOBER 4, 2013
	PASSED THE SENATE  SEPTEMBER 9, 2013
	PASSED THE ASSEMBLY  SEPTEMBER 12, 2013
	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 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 792, 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 clean energy resource, as defined, for
the use of a single customer or the customer's tenants.


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, 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 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 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 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.
               
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