Today's Law As Amended

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SB-952 Sales and use taxes: exemption: backup electrical generators: deenergization events.(2019-2020)

As Amends the Law Today


 Section 6356.3 is added to the Revenue and Taxation Code, to read:

 (a) For purposes of this section:
(1) “Backup electrical generator” means a standby or portable device that meets all of the following requirements:
(A) The device can generate at least 20 kilowatts.
(B) The device is designed and manufactured exclusively for the generation of electricity.
(C) The device meets and complies with the State Air Resources Board’s air quality standards for use in California.
(2) “Critical facility” means all of the following facilities:
(A) Emergency service facilities that are police stations, fire stations, and emergency operation centers.
(B) Public health facilities that are hospitals, skilled nursing facilities, nursing homes, blood banks, health care facilities, dialysis centers, and hospice facilities.
(C) Public utility facilities vital to maintaining or restoring normal service, including, but not limited to, interconnected publicly owned utilities and electric cooperatives.
(D) Water and wastewater facilities that are associated with the provision of drinking water or processing of wastewater, including facilities used to pump, divert, transport, store, treat, and deliver water or wastewater.
(E) Communication facilities that are selective routers, central offices, head ends, cellular switches, remote terminals, and cellular sites.
(F) Public schools.
(G) Public jails and public prisons
(H) Public transit stations and public transit districts.
(3) “Deenergization event” means a proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.
(b) On and after January 1, 2021, and before January 1, 2026, there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a backup electrical generator if both of the following are true:
(1) The backup electrical generator is purchased for use exclusively in powering a critical facility by a city, county, city and county, special district, or other political subdivision during deenergization events.
(2) The purchaser of the backup electrical generator provides to the seller a written statement providing that the purchaser purchased the emergency backup generator for use exclusively in powering a critical facility during a deenergization event.
(c) This section shall remain in effect only until December 31, 2026, and as of that date is repealed.
SEC. 2.
 (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to the tax expenditure created by the addition of Section 6356.3 of the Revenue and Taxation Code made by this act, the Legislature finds and declares all of the following:
(1) Public agencies, including local governments, carry out critical services on behalf of Californians.
(2) During deenergization events, public agencies are expected to perform their functions regardless of access to electricity and some public agencies are required to perform their functions due to potential penalties or legal liabilities.
(3) Public agencies are not in the business of energy generation or storage, but must deepen their experience in that role by necessity as electrical corporations increasingly implement deenergization events.
(4) More affordable equipment for the purpose of backup electricity generation will ensure that residents represented or served by these public agencies are not unduly burdened by costs.
(5) It is the intent of the Legislature to facilitate the purchase of backup electricity generation equipment by public agencies in order to protect public interests, avoid liability, and enhance public health and safety.
(b) (1) The Legislative Analyst’s Office shall, on an annual basis, collaborate with the California Department of Tax and Fee Administration to review and submit a report to the Legislature regarding the effectiveness of the benefit. The review shall include, but not be limited to, the sales and use tax revenue lost due to the exemption. The report to the Legislature required by this section shall be submitted in compliance with Section 9795 of the Government Code.
(2) The Legislative Analyst’s Office may require information from the California Department of Tax and Fee Administration, and the California Department of Tax and Fee Administration shall provide to the Legislative Analyst’s Office that information, for purposes of complying with paragraph (1).
SEC. 3.
 Notwithstanding Section 2230 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any sales and use tax revenues lost by it under this act.
SEC. 4.
 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.