Bill Text: CA SB49 | 2023-2024 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Renewable energy: Department of Transportation: evaluation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-07 - Chaptered by Secretary of State. Chapter 379, Statutes of 2023. [SB49 Detail]
Download: California-2023-SB49-Amended.html
Section 91.9 is added to the Streets and Highways Code, to read: lease and license lease, grant easements over, or enter into joint-use agreements for land within department-owned rights-of-way to public utilities or other entities to build and operate renewable energy generation facilities, energy storage facilities connected to a renewable energy generation facility,
facilities,
and electrical transmission and distribution facilities.
Bill Title: Renewable energy: Department of Transportation: evaluation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-10-07 - Chaptered by Secretary of State. Chapter 379, Statutes of 2023. [SB49 Detail]
Download: California-2023-SB49-Amended.html
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Amended
IN
Assembly
June 15, 2023 |
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Amended
IN
Senate
April 24, 2023 |
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Amended
IN
Senate
March 21, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 49
| Introduced by Senator Becker |
December 05, 2022 |
An act to add Sections 17053.10 and 23605 to the Revenue and Taxation Code, and to add Section 91.9 to the Streets and Highways Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
SB 49, as amended, Becker.
Renewable energy: solar canopies: income tax credits and Department of Transportation strategic plan.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2024, and before January 1, 2032, in an amount equal to 5% of costs incurred during the taxable year for constructing a solar canopy project, as specified.
Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would make specified findings detailing the goal of the
above-described tax credit, performance indicators for determining whether the credit meets that goal, and data collection requirements.
Existing law vests the Department of Transportation with full possession and control of all state highways and all property and rights in property acquired for state highway purposes. Existing law authorizes the department to lease, for up to 99 years, areas above or below state highways to public or private entities, as specified. Existing law also authorizes the department to issue certain permits for a state highway’s right-of-way necessary for telegraph, telephone, or electrical lines or of any ditches, pipes, drains, sewers, or underground structures, unless otherwise specifically provided in the instrument conveying title.
This bill would require the department, in coordination with the State Energy Resources Conservation and Development Commission and the
Public Utilities Commission, to develop a strategic plan to lease and license lease, grant easements over, or enter into joint-use agreements for land within
department-owned rights-of-way to public utilities or other entities to build and operate renewable energy generation facilities, energy storage facilities connected to renewable energy generation facilities, facilities, and electrical transmission and distribution facilities, as specified. On or before July 1, 2027, the bill would also require the department to publish specified information on its internet website, including the actual amount of area of department-owned rights-of-way subject to a lease, easement, or joint-use agreement for renewable energy generation or energy storage.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) With Senate Bill 100 (Chapter 312 of the Statutes of 2018) and Senate Bill 1020 (Chapter 361 of the Statutes of 2022), the state has established a target for 100 percent of retail sales of electricity to be from renewable or zero-carbon resources by 2045, with interim targets of 90 percent by 2035 and 95 percent by 2040.
(2) To achieve the 100 percent target for retail sales of electricity, the Senate Bill 100 Joint Agency report from March 2021 estimated that the state will need to add 110 gigawatts
of solar generation capacity by 2045.
(3) Solar energy generation requires a lot of land and competes against other beneficial uses for that land, including agricultural uses, recreational uses, and land conservation as part of the state’s 30x30 strategy.
(4) It is in the interest of the state to encourage and enable the development of renewable energy generation, including solar energy generation, on land with no other planned beneficial use, such as along highway
rights-of-way. rights-of-way, or in rights-of-way where the land can be used for renewable energy generation without interfering with current uses, such as building solar energy generation on canopies above parking lots.
(5) The County of Los Angeles alone has an estimated 101 square miles of parking lots that could provide about 6,500 megawatts of power if they were covered by solar canopies. Encouraging the development of solar canopies could make a significant contribution to achieving the state’s need for increased solar energy generation capacity while reducing the amount of other land required.
(5)
(6) Additional renewable energy generation, especially if paired with energy storage, can also help the state achieve better grid reliability and lower the risk of power outages.
(6)
(7) Renewable energy generation from solar canopies over surface parking lots and from solar energy generation facilities along highway rights-of-way can provide a local
source of electricity for electric vehicle charging stations that are also often located within surface parking lots and along highways.
(7)
(8) The Independent System Operator has estimated the need for $30,000,000,000 in investments in increased transmission capacity by 2040 in order to achieve the Senate Bill 100 target.
(8)
(9) High-voltage transmission lines are extremely difficult to site and permit, in part because they often require coordination with a large number of landowners and local jurisdictions. Numerous studies have recommended siting new transmission lines along existing rights-of-way as an approach for getting past these siting challenges.
(9)
(10) In April 2021, the Federal Highway Administration issued guidance to encourage state departments of
transportation to use highway rights-of-way “for pressing public needs relating to climate change,” including “renewable energy generation and electrical transmission and distribution projects.”
(11) Increasing renewable energy generation in urban and suburban areas, including from solar canopies, can also reduce the need for long-distance transmission of renewable energy generated in rural areas into population centers.
(10)Leasing or licensing
(12) Leasing, granting easements over, or entering into joint-use agreements for land within transportation rights-of-way for renewable energy generation, energy storage, and electrical transmission and distribution can be a source of revenue for the state.
(11)
(13) Developing renewable energy generation within the transportation rights-of-way can also reduce the state’s roadside maintenance burden by reducing the need for vegetation management.
(b) It is the intent of the Legislature to increase the availability of state-controlled land within transportation rights-of-way for renewable energy development, energy storage, and electrical transmission.
do both of the following:
(1) Provide incentives for the development of solar canopies to boost the local generation of renewable energy in urban and suburban areas, thereby reducing the need for dedicated land in rural areas to generate clean energy and for long-distance transmission to deliver that clean energy into population centers.
(2) Increase the availability of state-controlled land within transportation rights-of-way for renewable energy development, energy storage, and electrical transmission and distribution.
SEC. 2.
Section 17053.10 is added to the Revenue and Taxation Code, to read:17053.10.
(a) For each taxable year beginning on or after January 1, 2024, and before January 1, 2032, there shall be allowed a credit against the “net tax,” as defined in Section 17039, in an amount equal to 5 percent of costs incurred during the taxable year for constructing a qualified solar canopy project.(b) For the purposes of this section, the following definitions apply:
(1) (A) “Eligible area” means a residential, commercial, government, or industrial site containing an area dedicated to both the placement of a solar canopy and another use, including, but not limited to, use as a parking lot, outdoor seating, or recreation area.
(B) “Eligible area” does not include either of the following:
(i) The roof of a building.
(ii) A site located over a surface parking lot within one-half mile of a major transit stop or a future major transit stop identified in an applicable regional transportation plan.
(2) “Qualified solar canopy project” means construction of a solar canopy over an eligible area with a nameplate capacity of at least 15 kilowatts of alternating current.
(3) “Solar canopy” means an elevated structure containing a solar energy system. “Solar canopy” includes the solar energy system, energy storage connected to and primarily charged by the solar energy system, and powerlines or other equipment required to
connect the solar canopy to the electrical grid or a building on the site.
(4) “Solar energy system” means a solar energy device that has the primary purpose of providing for the collection and distribution of solar energy for the generation of electricity.
(5) “Major transit stop” has the same meaning as defined in Section 21064.3 of the Public Resources Code.
(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess credit may be carried over to reduce the “net tax” in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted.
SEC. 3.
Section 23605 is added to the Revenue and Taxation Code, to read:23605.
(a) For each taxable year beginning on or after January 1, 2024, and before January 1, 2032, there shall be allowed a credit against the “tax,” as defined in Section 23036, in an amount equal to 5 percent of costs incurred during the taxable year for constructing a qualified solar canopy project.(b) For the purposes of this section, the following definitions apply:
(1) (A) “Eligible area” means a residential, commercial, government, or industrial site containing an area dedicated to both the placement of a solar canopy and another use, including, but not limited to, use as a parking lot, outdoor seating, or recreation area.
(B) “Eligible area” does not include either of the following:
(i) The roof of a building.
(ii) A site located over a surface parking lot within one-half mile of a major transit stop or a future major transit stop identified in an applicable regional transportation plan.
(2) “Qualified solar canopy project” means construction of a solar canopy over an eligible area with a nameplate capacity of at least 15 kilowatts of alternating current.
(3) “Solar canopy” means an elevated structure containing a solar energy system. “Solar canopy” includes the solar energy system, energy storage connected to and primarily charged by the solar energy system, and powerlines or other equipment required to
connect the solar canopy to the electrical grid or a building on the site.
(4) “Solar energy system” means a solar energy device that has the primary purpose of providing for the collection and distribution of solar energy for the generation of electricity.
(5) “Major transit stop” has the same meaning as defined in Section 21064.3 of the Public Resources Code.
(c) In the case where the credit allowed by this section exceeds the “tax,” the excess credit may be carried over to reduce the “tax” in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted.
SEC. 2.SEC. 4.
Section 91.9 is added to the Streets and Highways Code, to read:91.9.
(a) On or before December 31, 2025, the department, in coordination with the State Energy Resources Conservation and Development Commission and the Public Utilities Commission, shall develop a strategic plan to(b) The strategic plan described in subdivision (a) shall do all of the following:
(1) Evaluate the suitability of department-owned rights-of-way for the development of renewable energy generation and energy
storage facilities.
(2) Identify and quantify department-owned rights-of-way that could be made available for leasing or licensing leasing, granting easements, or entering into joint-use agreements for the development of renewable energy generation and energy storage facilities, to the maximum extent feasible, after consideration of safety and other priorities that the department has identified for the department-owned rights-of-way.
(3) Establish goals for the amount of renewable energy generation capacity for department-owned rights-of-way that will be leased
or subject to an easement or joint-used agreement by 2030 and 2045.
(4) Identify department-owned rights-of-way corridors that are aligned with the needs for increased electrical transmission and distribution capacity as identified by the Public Utilities Commission, the Independent
System Operator, or other balancing authorities, as defined in subdivision (b) of Section 399.12 of the Public Utilities Code, and wildfire mitigation projects for electrical transmission and distribution facilities, as identified in state-approved wildfire mitigation plans submitted pursuant to Section 8386 of the Public Utilities Code, and prioritize making those corridors available for the purpose of electrical transmission and distribution facility development.
(5) Publish requirements for the development of solar
renewable energy generation and generation, energy storage facilities or facilities, and electrical transmission and distribution facilities within department-owned rights-of-way, including any safety or environmental issues and the steps that projects will be required to take to mitigate these issues.
(6) Establish a process for entities interested in leasing or licensing
obtaining an easement or joint-use agreement for land within
department-owned rights-of-way to operate and build a renewable energy generation facility, an energy storage facility connected to a renewable energy generation facility, facility, or an electrical
transmission or distribution facility to apply to the department for land use agreements. agreements under terms that reasonably allow the entities to obtain financing and enforce rights to protect the facilities, reduce the risk and costs of relocations, and encourage and facilitate the development.
(7) Recommend regulatory or statuary changes that, if enacted, would facilitate the development of renewable energy generation facilities, energy storage facilities, and electrical transmission and distribution facilities
on department-owned rights-of-way.
(c) On or before July 1, 2027, and annually thereafter, the department shall annually publish on its internet website all of the following information during the prior year:
(1) The goals established under paragraph (3) of subdivision (b).
(2) The actual amount of area of department-owned rights-of-way leased or licensed subject to a lease, easement, or joint-use agreement for renewable energy generation or energy storage.
(3) The nameplate capacity of
renewable energy generation or energy storage that are operating on department-owned rights-of-way.
(4) The number of megawatt-miles of transmission and distribution facilities developed within department-owned rights-of-way.
SEC. 5.
(a) For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the objective of the exemption created by Sections 17053.10 and 23605 of the Revenue and Taxation Code, as added by Sections 2 and 3 of this act, is to provide incentives for the development of solar canopies to boost the local generation of renewable energy in urban and suburban areas while reducing the need for dedicated land in rural areas and the need for transmission to deliver the clean energy into population centers.(b) The performance indicators the Legislature can use to determine if the exemption is achieving the objective stated in subdivision (a) shall be the dollar amount of tax credit claimed and the nameplate capacity of solar canopies and energy storage systems constructed by eligible projects that claimed the tax credits pursuant to this act.
(c) The Franchise Tax Board shall annually prepare a written report that includes both of the following:
(1) The dollar amount of tax credits claimed for eligible solar canopy projects pursuant to this act.
(2) The nameplate capacity of solar canopies and energy storage systems constructed by those eligible projects.
(d) No later than July 1, 2024, and each
July 1 thereafter, the Franchise Tax Board shall submit the report prepared pursuant to subdivision (c) to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate and Assembly Committees on Appropriations, the Senate Committee on Governance and Finance, and the Assembly Committee on Revenue and Taxation. The report shall be submitted in compliance with Section 9795 of the Government Code.
