BILL NUMBER: SB 654 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 16, 2001
INTRODUCED BY Senator Haynes
FEBRUARY 23, 2001
An act to amend Section 2822 of add
Section 392.2 to the Public Utilities Code, relating
to public utilities. and to add Sections 17053.83 and
23683 to the Revenue and Taxation Code, relating to taxation, to take
effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 654, as amended, Haynes. Electricity: standby
charges Taxation: credits: electricity conservation
.
The Personal Income Tax Law and the Bank and Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
This bill would allow a credit under both laws in an amount equal
to the product of a taxpayer's energy conservation percentage, not to
exceed 25%, and the cost of electricity used by the taxpayer in this
state.
This bill would provide that the credits are refundable upon
appropriation by the Legislature.
This bill would require investor-owned utilities to provide a
specified accounting on its monthly bills to electricity customers
regarding electricity savings for purposes of the credits.
This bill would take effect immediately as a tax levy.
Existing law requires the Public Utilities Commission to approve
and establish standby charges for electrical corporations.
This bill would require the commission to prohibit the imposition
of standby charges on the use or operation of distributed energy
resources, as defined.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2822 of the Public Utilities Code is
SECTION 1. Section 392.2 is added to the Public Utilities Code, to
read:
392.2. Each investor-owned utility in this state shall provide in
its monthly billing statement to its electricity customers an
itemized accounting of the amount each customer has reduced his, her,
or its electricity consumption in the current taxable year as
compared to the immediately preceding taxable year for purposes of
claiming the credits allowed by Sections 17053.83 and 23683 of the
Revenue and Taxation Code.
SEC. 2. Section 17053.83 is added to the Revenue and Taxation
Code, to read:
17053.83. (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to the product of
the taxpayer's energy conservation percentage, not to exceed 25
percent, and the cost paid or incurred by the taxpayer during the
taxable year for the amount of electricity used by the taxpayer in
this state.
(b) For purposes of this section, "energy conservation percentage"
means the amount of reduction, expressed as a percentage, in the
amount of electricity used in this state by the taxpayer during the
taxable year as compared to the amount of electricity used in this
state by the taxpayer during the immediately preceding taxable year.
(c) In the case of a taxpayer whose credits provided under this
section exceed the taxpayer's tax liability computed under this part,
the excess shall be credited against other amounts due, if any, from
the taxpayer and the balance, if any, shall, upon appropriation by
the Legislature, be refunded to the taxpayer.
SEC. 3. Section 23683 is added to the Revenue and Taxation Code,
to read:
23683. (a) There shall be allowed as a credit against the "tax,"
as defined in Section 23036, an amount equal to the product of the
taxpayer's energy conservation percentage, not to exceed 25 percent,
and the cost paid or incurred by the taxpayer during the taxable year
for the amount of electricity used by the taxpayer in this state.
(b) For purposes of this section, "energy conservation percentage"
means the amount of reduction, expressed as a percentage, in the
amount of electricity used in this state by the taxpayer during the
taxable year as compared to the amount of electricity used in this
state by the taxpayer during the immediately preceding taxable year.
(c) In the case of a taxpayer whose credits provided under this
section exceed the taxpayer's tax liability computed under this part,
the excess shall be credited against other amounts due, if any, from
the taxpayer and the balance, if any, shall, upon appropriation by
the Legislature, be refunded to the taxpayer.
SEC. 4. This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.
amended to read:
2822. (a) Except as otherwise specified in subdivision (b), the
commission shall approve and establish standby charges for electrical
corporations. The commission may act in this regard on its own
motion or on application of an electrical corporation or a private
energy producer.
(b) The commission shall prohibit standby charges on the use or
operation of distributed energy resources. "Distributed energy
resources" for the purposes of this section means any generation,
storage, or related ancillary technology designed primarily to serve
the local demand for electricity other than from conventional power
sources.