BILL NUMBER: AB 2014	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 8, 2010

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 17, 2010

    An act to amend Section 385.2 of the Public Utilities
Code, relating to energy.   An act to add Section
17059.2 to the Revenue and Taxation Code, relating to taxation, to
take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2014, as amended, Torrico.  Energy efficiency.
  Income taxes: credits: energy efficient homes. 

   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.  
   This bill would, for taxable years beginning on or after January
1, 2010, allow a credit in a specified amount for bringing a
qualified principal residence, as defined, into compliance with the
recommendations for energy efficiency made by an energy audit of the
qualified principal residence.  
   This bill would take effect immediately as a tax levy.

   Existing law requires a local publicly owned electric utility, by
a specified date, to be responsible for implementing an energy
efficiency program that recognizes the Legislature's intent to
encourage energy savings and greenhouse gas emission reductions in
existing residential and nonresidential buildings.  

   This bill would make a technical, nonsubstantive change to this
requirement. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) The Legislature recently passed Assembly Bill 32 of the
2009-10 Regular Session, landmark environmental legislation that
requires California to reduce its greenhouse gas emissions by
approximately 30 percent by the year 2020.  
   (b) Existing residential buildings are a significant contributor
to greenhouse gas emissions, and the Legislature recognizes that
energy savings and greenhouse gas emission reductions are needed in
the existing residential building stock.  
   (c) Energy audits and improvements to existing building stock will
greatly reduce greenhouse gas emissions, as well as create much
needed jobs in the energy efficiency, green construction, and home
improvement fields. 
   SEC. 2.    Section 17059.2 is added to the  
Revenue and Taxation Code   , to read:  
   17059.2.  (a) (1) For each taxable year beginning on or after
January 1, 2010, there shall be allowed as a credit against the "net
tax," as defined by Section 17039, an amount as specified in
paragraph (2) for a taxpayer who commissions an energy audit of his
or her qualified principal residence and makes the recommended
improvements to improve the energy efficiency of his or her qualified
principal residence.
   (2) The credit allowed by paragraph (1) shall be the lesser of 50
percent of the qualified costs that are paid or incurred by a
taxpayer for the taxable year or one thousand five hundred dollars
($1,500).
   (b) For purposes of this section:
   (1) "Qualified costs" means costs paid or incurred by a taxpayer
for the repair, rehabilitation, or improvement of a qualified
principal residence made toward bringing the qualified principal
residence in compliance with the recommendations of the energy audit.

   (2) "Qualified principal residence" means a single-family
residence, whether detached or attached, that is the principal
residence of the taxpayer.
   (c) No credit shall be allowed by this section unless the taxpayer
provides satisfactory substantiation to, and in the form and manner
requested by, the Franchise Tax Board, that the energy audit was
conducted and the recommended improvements were made to the qualified
principal residence.
   (d) In the case where the credit allowed by this section exceeds
the "net tax," the excess may be carried over to reduce the "net tax"
in the following year, and succeeding years if necessary, until the
credit is exhausted. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 385.2 of the Public
Utilities Code is amended to read:
   385.2.  (a) Upon the completion and promulgation of regulations
pursuant to subdivision (a) of Section 25943 of the Public Resources
Code, each governing body of a local publicly owned electric utility
shall be responsible for implementing an energy efficiency program
that recognizes the intent of the Legislature to encourage energy
savings and greenhouse gas emission reductions in existing
residential and nonresidential buildings, while taking into
consideration the effect of the program on rates, reliability, and
financial resources.
   (b) In the report prepared pursuant to Section 9615, each local
publicly owned electric utility shall include both of the following:
   (1) The utility's status in implementing an energy efficiency
program pursuant to subdivision (a) and the utility's progress toward
attaining the goal of the program.
   (2) The net energy savings from energy efficiency improvements
installed pursuant to this section.