California 2019 2019-2020 Regular Session

California Assembly Bill AB1208 Amended / Bill

Filed 03/25/2019

                    Amended IN  Assembly  March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1208Introduced by Assembly Member Ting(Coauthor: Assembly Member Mullin)February 21, 2019 An act relating to energy storage. to amend Section 7284.5 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 1208, as amended, Ting. Energy storage systems. Utility user taxes: exemption: clean energy resource.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.Existing law, until January 1, 2020, exempts from any utility user tax on the consumption of electricity imposed by a local jurisdiction, as defined, the consumption of electricity generated by a clean energy resource for the use of a customer or the customers tenants. Existing law defines clean energy resource for these purposes to include a device or technology used for renewable electrical generation facility, as specified.This bill would extend the repeal date of the above-described exemption from January 1, 2020, to January 1, 2027. The bill would expand the definition of clean energy resource to include a device or technology used for a renewable electrical storage facility. The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets by October 1, 2013, and to reevaluate the determinations not less often than once every 3 years.This bill would state the intent of the Legislature to enact legislation related to energy storage systems.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 7284.5 of the Revenue and Taxation Code is amended to read:7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.SEC. 2. The Legislature finds

 Amended IN  Assembly  March 25, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1208Introduced by Assembly Member Ting(Coauthor: Assembly Member Mullin)February 21, 2019 An act relating to energy storage. to amend Section 7284.5 of the Revenue and Taxation Code, relating to taxation.LEGISLATIVE COUNSEL'S DIGESTAB 1208, as amended, Ting. Energy storage systems. Utility user taxes: exemption: clean energy resource.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.Existing law, until January 1, 2020, exempts from any utility user tax on the consumption of electricity imposed by a local jurisdiction, as defined, the consumption of electricity generated by a clean energy resource for the use of a customer or the customers tenants. Existing law defines clean energy resource for these purposes to include a device or technology used for renewable electrical generation facility, as specified.This bill would extend the repeal date of the above-described exemption from January 1, 2020, to January 1, 2027. The bill would expand the definition of clean energy resource to include a device or technology used for a renewable electrical storage facility. The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets by October 1, 2013, and to reevaluate the determinations not less often than once every 3 years.This bill would state the intent of the Legislature to enact legislation related to energy storage systems.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NO  Local Program: NO 

 Amended IN  Assembly  March 25, 2019

Amended IN  Assembly  March 25, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 1208

Introduced by Assembly Member Ting(Coauthor: Assembly Member Mullin)February 21, 2019

Introduced by Assembly Member Ting(Coauthor: Assembly Member Mullin)
February 21, 2019

 An act relating to energy storage. to amend Section 7284.5 of the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 1208, as amended, Ting. Energy storage systems. Utility user taxes: exemption: clean energy resource.

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.Existing law, until January 1, 2020, exempts from any utility user tax on the consumption of electricity imposed by a local jurisdiction, as defined, the consumption of electricity generated by a clean energy resource for the use of a customer or the customers tenants. Existing law defines clean energy resource for these purposes to include a device or technology used for renewable electrical generation facility, as specified.This bill would extend the repeal date of the above-described exemption from January 1, 2020, to January 1, 2027. The bill would expand the definition of clean energy resource to include a device or technology used for a renewable electrical storage facility. The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets by October 1, 2013, and to reevaluate the determinations not less often than once every 3 years.This bill would state the intent of the Legislature to enact legislation related to energy storage 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.

Existing law, until January 1, 2020, exempts from any utility user tax on the consumption of electricity imposed by a local jurisdiction, as defined, the consumption of electricity generated by a clean energy resource for the use of a customer or the customers tenants. Existing law defines clean energy resource for these purposes to include a device or technology used for renewable electrical generation facility, as specified.

This bill would extend the repeal date of the above-described exemption from January 1, 2020, to January 1, 2027. The bill would expand the definition of clean energy resource to include a device or technology used for a renewable electrical storage facility. The bill would include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

 Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations. Existing law requires the commission to open a proceeding to determine appropriate targets, if any, for each load-serving entity, as defined, to procure viable and cost-effective energy storage systems to be achieved by December 31, 2015, and December 31, 2020. If determined to be appropriate, the commission is required to adopt the procurement targets by October 1, 2013, and to reevaluate the determinations not less often than once every 3 years.



This bill would state the intent of the Legislature to enact legislation related to energy storage systems.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 7284.5 of the Revenue and Taxation Code is amended to read:7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.SEC. 2. The Legislature finds

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

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

SECTION 1. Section 7284.5 of the Revenue and Taxation Code is amended to read:7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.

SECTION 1. Section 7284.5 of the Revenue and Taxation Code is amended to read:

### SECTION 1.

7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.

7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.

7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.



7284.5. (a) For the purposes of this section, the following terms have the following meanings: 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 or storage 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 generators 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 customers consumption of electricity generated by a clean energy resource that is located on the customers premises and used solely for the customer or the customers 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, 2020, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date. repealed.

SEC. 2. The Legislature finds

SEC. 2. The Legislature finds

SEC. 2. The Legislature finds

### SEC. 2.