BILL NUMBER: ABX1 29 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY FEBRUARY 20, 2001
INTRODUCED BY Assembly Members Kehoe , Cedillo, and
Shelley
(Principal coauthors: Assembly Members Cohn, Nakano, and
Wesson)
(Coauthors: Assembly Members Cedillo, Nakano, and Wesson
Calderon, Cardenas, Keeley, and Koretz )
FEBRUARY 5, 2001
An act to add Chapter 5.3 (commencing with Section 25425) to
Division 15 of the Public Resources Code, and to add Section
Sections 17053.95 and 23650 to the
Revenue and Taxation Code, relating to energy conservation, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 29, as amended, Kehoe. Energy conservation.
(1) The existing Warren-Alquist State Energy Resources
Conservation and Development Act requires the State Energy Resources
Conservation and Development Commission to perform specified duties
relating to the conservation and development of energy resources.
This bill would require the commission to pay the costs of
installation of an interval meter to a small business that
voluntarily reduces its electric consumption.
This bill would require the commission to administer a grant
program for the replacement of energy inefficient appliances. The
bill would require the commission to cooperate with state agencies
and local community-based organizations to open exchange centers that
will assist in the pickup of an old appliance and will certify to
the commission that the energy inefficient model was or will be
destroyed or dismantled in an environmentally sound manner.
The bill would authorize the commission to adopt emergency
regulations.
The bill would also require the commission to administer a grant
and loan program for eligible construction or retrofit projects, as
defined.
(2) The Personal Income Tax Law authorizes
and the Bank and Corporation Tax Law authorize
various credits against the taxes imposed by that law
those laws .
This bill would provide a credit for a small business for taxable
years beginning on or after January 1, 2002, in an amount equal to
30% of the cost of replacing a commercial refrigeration unit with a
more energy-efficient model. The bill would provide that if the
credit exceeds the "tax" or "net tax," the excess may be
carried over to reduce the "tax" or "net tax" in the
following 4 years.
(3) The bill would appropriate $375,000,000 from the General Fund
to the commission to carry out the above conservation programs.
(4) The bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 5.3 (commencing with Section 25425) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 5.3. ENERGY CONSERVATION ACT OF 2001
Article 1. General Provisions
25425. This chapter shall be known, and may be cited, as the
Energy Conservation Act of 2001.
Article 2. Business Conservation Incentive Plan
25426. It is the intent of the Legislature in enacting this
article to encourage small businesses to reduce their energy
consumption, thereby saving themselves substantial sums of money and
making more electricity available for further expansion of commercial
enterprises in this state.
25427. As used in this article, the following terms have the
following meanings:
(a) "Commercial refrigeration" means a refrigerator that is
not a federally regulated consumer product.
(b) "Energy-efficient model" means an appliance that meets federal
Energy Star specifications set forth in ____.
(c) "Interval meter" means a device that measures
electricity usage in real time. "Interval meter" also includes
net energy metering as defined in Section 2827 of the Public
Utilities Code.
(b)
(d) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
25428. (a) The commission shall reimburse each small business for
the cost of installation up to eight hundred dollars ($800) of an
interval meter if the business reduces its electricity usage by not
less than 10 percent for one year following the date of
installation of the meter, compared to the usage during the
preceding 12 months before the date of
installation of the meter .
(b) For the purposes of this section, "cost of installation"
includes labor and equipment charges imposed by an entity defined in
subdivision (d) of Section 9604 of the Public Utilities Code or a
publicly owned utility that provides electricity.
Article 3. Loans and Grants for Energy Efficiency
Energy Efficiency Grants
25430. (a) The Legislature finds and declares that California is
in the midst of an energy crisis that requires both an increase in
the supply of energy and a reduction in demand.
(b) It is the intent of the Legislature to establish a
state-sponsored conservation effort to assist California's families
to participate in a solution to the energy crisis by replacing energy
inefficient models of appliances and by retrofitting homes
and workplaces to reduce energy consumption. These
conservation investments are vitally important for California's
long-term well-being.
(c) It is also the intent of the Legislature to establish
state-sponsored incentives in the form of grants and loans to small
businesses, developers, and residential property owners for
constructing and retrofitting buildings to be more energy efficient
by using design elements, including, but not necessarily limited to,
energy-efficient siding, higher rated insulation, and double-paned
windows.
(d)
(c) The energy conservation program established under this
article is intended to be in addition to, rather than to supplant,
any other existing program.
25431. (a) The commission shall administer a grant program for
qualified individuals for the replacement of energy inefficient
appliances, as provided in subdivision (c), with energy-efficient
models.
(b) Any person of low income, as defined in Section 50093 of the
Health and Safety Code, is eligible for a grant under the program
established under this section. Eligible persons shall also include
very low income Section 8 voucher recipients, as defined in Section
50105 of the Health and Safety Code, public housing authorities, and
private nonprofit low-income housing corporations.
(c) A grant shall be equal to 50 percent of the actual cost of the
energy-efficient model of the appliance not to exceed the following
amounts:
(1) Two hundred dollars ($200) for a room air-conditioner, as
defined in subdivision (b) of Section 1601 of Title 20 of the
California Code of Regulations.
(2) Six hundred dollars ($600) for a central air-conditioning heat
pump or other central air-conditioner, as described in subdivision
(c) of Section 1601 of Title 20 of the California Code of
Regulations.
(3) Four hundred dollars ($400) for a refrigerator or refrigerator
freezer, as described in subdivision (a) of Section 1601 of Title 20
of the California Code of Regulations.
(4) Four hundred dollars ($400) for a clothes washing machine.
(d) The amount of the grant received by the grant recipient shall
not be reduced pro rata by any other assistance received by the grant
recipient for the purchase of an energy-efficient appliance to
replace an energy inefficient model. However, the cumulative grant
shall not exceed 100 percent of the actual cost of the appliance.
(e) The amount of any grant awarded pursuant to this section
to a qualified individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
(f) The commission shall cooperate with state agencies and
local community-based organizations to open exchange centers. The
staff operating the exchange centers shall do both of the following:
(1) Assist in the pickup of an old appliance.
(2) Certify to the commission that the energy inefficient model
was or will be destroyed or dismantled in an environmentally sound
manner.
(f)
(g) The commission may contract with an appropriate
entity one or more appropriate entities to
implement and administer this article.
Article 4. Home Building Standards Grant and Loan Program
25433. The guidelines developed by the commission pursuant to
Section 25495 shall be utilized by the commission for the purpose of
determining eligibility for the construction or retrofit projects in
Section 25434.
25434. (a) (1) A small business or person of low income may apply
to the commission to receive a grant for an eligible construction or
retrofit project.
(2) The amount of a grant for an eligible construction or retrofit
project shall not exceed ____ dollars ($____).
(3) A grant shall be made only for an eligible construction or
retrofit project that will be as energy-efficient as a project that
utilizes the standards developed pursuant to Section 25495.
(4) The amount of the grant received by the grant recipient shall
be reduced pro rata by any other assistance received by the grant
recipient for the eligible construction or retrofit project.
(b) (1) A developer of housing for the persons described in
subdivision (b) of Section 25431, any residential homeowner or
homebuyer, or small business, may apply for a 2 percent low-interest
loan for an eligible construction or retrofit project.
(2) The amount of a loan for an eligible construction or retrofit
project shall not exceed _____ dollars ($___).
(3) A loan shall be made only for an eligible construction or
retrofit project that will be as energy efficient as a project that
utilizes the standards developed pursuant to Section 25495.
(c) For purposes of this article, the following terms have the
following meanings:
(1) "Eligible construction or retrofit project" means a new or
retrofit construction project for a building owned or to be owned by
a small business or a residence owned or to be owned by a homeowner
that complies with the guidelines developed by the commission
pursuant to Section 25495.
(2) "Person of low income" means a person of low income as defined
in Section 50093 of the Health and Safety Code.
(3) "Small business" means a small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
Article 4. Loans and Grants for Construction and Retrofit
Projects
25433. It is the intent of the Legislature to establish
incentives in the form of grants and loans to low-income residents,
small businesses, and residential property owners for constructing
and retrofitting buildings to be more energy efficient by using
design elements, including, but not limited to, energy-efficient
siding, insulation, and double-paned windows.
25433.5. (a) In consultation with the Public Utilities
Commission, the commission shall do both of the following for the
purpose of full or partial funding of an eligible construction or
retrofit project:
(1) Establish a grant program to provide financial assistance to
eligible low-income individuals.
(2) Establish a 2 percent interest per annum loan program to
provide financial assistance to a small business owner, residential
property owner, or individual who is not eligible for a grant
pursuant to paragraph (1), and whose gross annual income does not
exceed one hundred thousand dollars ($100,000).
(b) (1) The commission shall use the design guidelines adopted
pursuant to Section 25495 as standards to determine eligible
energy-efficiency projects.
(2) The award of a grant pursuant to this section is subject to
appeal to the commission upon a showing that the commission applied
factors, other than those adopted by the commission, in making the
award.
(3) The grant or loan recipient shall commit to using the grant or
loan for the purpose for which the grant or loan was awarded.
(4) Any action taken by an applicant to apply for, or to become or
remain eligible to receive, a grant award, including satisfying
conditions specified by the commission, does not constitute the
rendering of goods, services, or a direct benefit to the commission.
(5) The amount of any grant awarded pursuant to this article to a
low-income individual does not constitute income for purposes of
calculating the recipient's gross income for the tax year during
which the grant is received.
25434. The commission may contract with one or more business
entities capable of supplying or providing goods or services
necessary for the commission to carry out the responsibilities for
the programs conducted pursuant to this article, and shall contract
with one or more business entities to evaluate the effectiveness of
the programs implemented pursuant to subdivision (a) of Section
25433.5. The commission may select an entity on a sole source basis
for one or both of those purposes if the cost to the state will be
reasonable and the commission determines that it is in the best
interest of the state.
25435. As used in this article, the following terms have the
following meanings:
(a) "Eligible construction or retrofit project" means a project
for making improvements to a home or building in existence on the
effective date of the act adding this section, through an addition,
alteration, or repair, which effectively increases the energy
efficiency or reduces the energy consumption of the home or building
as specified by the commission's guidelines under Section 25495. The
improvements shall be deemed to be cost-effective.
(b) "Low income" means an individual with a gross annual income
equal to or less than 200 percent of the federal poverty level.
(c) "Small business" means any small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
Article 5. Small Business Refrigeration Tax Credit
25435. The commission shall administer the small business
refrigeration tax credit, as provided for in Section
17053.95 Sections 17053.95 and 23650 of the
Revenue and Taxation Code.
Article 6. Miscellaneous
25436. (1) The commission shall adopt regulations for purposes of
this chapter initially as emergency regulations in
accordance with Chapter 3.5 (commencing with Section 11349) of Part 1
of Division 3 of Title 2 of the Government Code. For purposes of
that chapter of the Government Code, including Section 11349.6 of the
Government Code, the adoption of the regulations shall be considered
by the Office of Administrative Law to be necessary for the
immediate preservation of the public peace, health and safety, and
general welfare.
(2) To the extent possible, the commission shall use existing
energy efficiency appliance standards.
SEC. 2. Section 17053.95 is added to the Revenue and Taxation
Code, to read:
17053.95. (a) For each taxable year beginning on or after January
1, 2002, there shall be allowed as a credit against the "net tax,"
as defined in Section 17039, a credit for a small business equal to
30 percent of the cost paid or incurred during the taxable year for
replacing a commercial refrigeration unit with a more
energy-efficient model, not to exceed two thousand dollars ($2,000).
(b) "Small business" means a small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
(c) 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 the succeeding four years if necessary,
until the credit is exhausted.
SEC. 3. Section 23650 is added to the Revenue and Taxation
Code, to read:
23650. (a) For each taxable year beginning on or after January 1,
2002, there shall be allowed as a credit against the "tax," as
defined in Section 23036, a credit for a small business equal to 30
percent of the cost paid or incurred during the taxable year for
replacing a commercial refrigeration unit with a more
energy-efficient model, not to exceed two thousand dollars ($2,000).
(b) "Small business" means a small business as defined in
paragraph (1) of subdivision (d) of Section 14837 of the Government
Code.
(c) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and the succeeding four years if necessary, until the
credit is exhausted.
SEC. 4. To the extent data is available, the Franchise Tax Board
shall report to the Legislature on or before January 1, 2003, and
each year thereafter, regarding the extent of the use of the tax
credits established by this act.
SEC. 5. The sum of three hundred seventy-five million
dollars ($375,000,000) is hereby appropriated from the General Fund
to the State Energy Resources Conservation and Development Commission
for allocation in accordance with the following schedule:
(a) Fifty million dollars ($50,000,000) shall be expended for the
consumer-based program that fosters the development of emerging
renewable technologies in distributed generation applications, as
described in paragraph (1) of subdivision (d) of Section 383.5 of the
Public Utilities Code. At least twenty-five million dollars
($25,000,000) of this amount shall be allocated by the commission for
photovoltaic technologies, as described in subparagraph (C) of
paragraph (2) of subdivision (d) of Section 383.5 of the Public
Utilities Code and the remainder shall be allocated by the commission
for solar thermal electric, fuel cell technologies that utilize
renewable fuels, and wind turbines of not more than 10 kilowatts
rated electrical capacity per customer site as described in that
subparagraph.
(b) Two hundred million dollars ($200,000,000) shall be expended
in accordance with Section 25431 of the Public Resources Code, for a
grant program for qualified individuals for the replacement of energy
inefficient appliances.
(c) One hundred million dollars ($100,000,000) shall be expended
in accordance with Section 25434 of the Public Resources Code, for a
loan or a grant for an eligible construction or retrofit project.
(d) Twenty-five million dollars ($25,000,000) shall be expended
for the Business Conservation Incentive Plan provided for in Article
2 (commencing with Section 25426) of Chapter 5.3 of Division 15 of
the Public Resources Code.
SEC. 4.
SEC. 6. This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
In order to implement energy conservation programs to address the
energy crisis of the winter of 2001 as soon as possible, it is
necessary that this act take effect immediately.