BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                 ALEX PADILLA, CHAIR
          

          SB 463 -  Strickland                                   Hearing  
          Date:  April 21, 2009                S
          As Introduced: February 26, 2009        FISCAL           B
                                                                        
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                                      DESCRIPTION
           
           Current law  supports the purchase and construction of renewable  
          energy projects through mechanisms such as the California Solar  
          Initiative, the Emerging Renewables Rebate program administered  
          by the California Energy Commission, and the Renewable Portfolio  
          Standard.

           Current law  provides solar energy systems with a property tax  
          exemption.

           This bill  provides a tax credit of 30%, with a maximum of $3000  
          per taxpayer, of the cost of a renewable energy resource project  
          or a renewable energy resource conversion technology project  
          that is installed on property owned or leased by the taxpayer  
          and reduces the taxpayer's energy usage from the energy grid.

                                      BACKGROUND
           
          California policy has long been supportive of renewable energy.   
          Tax credits and rebates for renewable energy projects have been  
          part of California law for decades.  Federal law has also been  
          supportive of renewables with tax credits of up to 30%,  
          production credits, and accelerated depreciation for specified  
          renewable energy projects.

          The popularity of renewable energy is driven by a desire to  
          diversify energy sources, reduce air pollution, reduce  
          greenhouse gas emissions, and reduce our dependence on foreign  
          energy resources.

                                       COMMENTS
           










              1.   Will This Help?  - State and federal policy provides  
               generous subsidies for renewable energy projects.  Will the  
               additional subsidies provided by this bill encourage the  
               installation of more renewable energy projects?

              2.   Defining Terms  - The terms "renewable energy resource  
               project" and "renewable energy resource conversation  
               technology project" are not defined in the bill.  Rather  
               than create new definitions it would be simplest to adopt  
               the definition of renewable energy that has been used in  
               the Renewable Portfolio Standard.  This definition,  
               contained in Section 25741(b) of the Public Resources Code,  
               is an electric generation facility that uses biomass, solar  
               thermal, photovoltaic, wind, geothermal, fuel cells using  
               renewable fuels, small hydroelectric generation of 30  
               megawatts or less, digester gas, municipal solid waste  
               conversation, landfill gas, ocean wave, ocean thermal, or  
               tidal current.   The author and committee may wish  to make  
               this amendment.
           
              3.   Double Referral  - This bill has been double-referred to  
               the Senate Revenue and Taxation Committee.

                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          None on file

           Oppose:
           
          None on file

          





































          Randy Chinn 
          SB 463 Analysis
          Hearing Date:  April 21, 2009