Today's Law As Amended


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AB-1208 Utility user taxes: exemption: clean energy resource.(2019-2020)



As Amends the Law Today
As Amends the Law on Nov 18, 2019


SECTION 1.

 Section 7284.5 of the Revenue and Taxation Code is amended to read:

7284.5.
 (a) For the purposes of this section:
(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(c) This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
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.