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

California Legislature—2013–14 Regular Session

Assembly BillNo. 792


Introduced by Assembly Member Mullin

(Principal coauthor: Senator Hill)

February 21, 2013


An act to addbegin insert and repealend insert Section 7284.5begin delete toend deletebegin insert ofend insert 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 wouldbegin insert, until January 1, 2020,end insert exempt from any utility user tax imposed by a local jurisdiction, as defined, the consumption of electricity generated by abegin delete renewable distributed generation system that is installed before January 1, 2020,end deletebegin insert clean energy resource, as defined,end insert for thebegin delete exclusiveend delete use of a single customerbegin insert or the customer’s tenantsend insert.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 7284.5 is added to the Revenue and
2Taxation Code
, to read:

3

7284.5.  

(a) For the purposes of this section,begin delete “localend deletebegin insert the following
4terms have the following meanings:end insert

5begin insert (1)end insertbegin insertend insertbegin insertend insertbegin insertLocalend insert jurisdiction” means any city, county, city and county,
6including any chartered city, county, or city and county, district,
7or public or municipal corporation.

begin insert

8(2) “Clean energy resource” means either of the following:

end insert
begin insert

9(A) A device or technology used for a renewable electrical
10generation facility, as set forth in paragraph (1) of subdivision (a)
11of Section 25741 of the Public Resources Code.

end insert
begin insert

12(B) A technology that meets all of the following requirements:

end insert
begin insert

13(i) The emissions standards adopted by the State Air Resources
14Board pursuant to the distributed generation certification program
15requirements of Article 3 (commencing with Section 94200) of
16Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the
17California Code of Regulations.

end insert
begin insert

18(ii) Produces de minimis emissions of sulfur oxides and nitrogen
19oxides.

end insert
begin insert

20(iii) The greenhouse gases emission performance standard
21established by the Public Utilities Commission pursuant to Section
228341 of the Public Utilities Code.

end insert
begin insert

23(iv) Has a total electrical efficiency of no less than 45 percent.

end insert
begin insert

24(v) Is sized to meet the generator’s onsite electrical demand.

end insert
begin insert

25(vi) Has parallel operation to the electrical distribution grid.

end insert
begin insert

26(vii) Utilizes renewable or nonrenewable fuel.

end insert
begin insert

27(viii) Pays any applicable utility users tax for nonrenewable
28fuels used in electricity generation.

end insert

29(b)begin insertend insertbegin insert(end insertbegin insert1)end insert There is exempt from any utility user tax on the
30consumption of electricity, imposed by any local jurisdiction, a
31customer’s consumption of electricity generated by abegin delete renewable
32distributed generation system that is installed before January 1,
332020, for the exclusive use of a single customer.end delete
begin insert clean energy
P3    1resource that is located on the customer’s premises and used solely
2for the customer or the customer’s tenants.end insert

begin insert

3(2) This section does not exempt from any utility users tax
4imposed by any local jurisdiction any electricity or gas, not
5described in paragraph (1), that is provided to a customer by an
6electrical corporation, publicly owned utility, electrical
7cooperative, or irrigation district.

end insert
begin insert

8(c) This section shall remain in effect only until January 1, 2020,
9and as of that date is repealed, unless a later enacted statute, that
10is enacted before January 1, 2020, deletes or extends that date.

end insert
11

SEC. 2.  

The Legislature finds and declares that exempting the
12consumption of electricity generated by abegin delete renewable distributed
13generation systemend delete
begin insert clean energy resource,end insert that is installed for the
14exclusive use of a single customerbegin insert, or the customer’s tenants,end insert from
15local utility user taxes will ensure statewide uniformity and fairness
16in the overall imposition of the utility user tax. Therefore,
17exempting from utility user taxes the consumption of electricity
18generated by abegin delete renewable distributed generation systemend deletebegin insert clean
19energy resource,end insert
that is installed for the exclusive use of a single
20customer is a matter of statewide concern, and not a municipal
21affair, as that term is used in Section 5 of Article XI of the
22California Constitution.



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