Assembly Member Castillo's proposal to modify California's generator regulations creates targeted exemptions during power-loss emergencies while establishing new tax credits for backup power equipment purchases. The legislation would suspend State Air Resources Board emissions requirements for portable and emergency backup generators during declared states of emergency involving electrical service disruptions.

The bill establishes a personal income tax credit for backup generator purchases made between 2026 and 2030. Individual taxpayers and small businesses could claim up to $3,500 annually toward generators costing no more than $7,000 for residential or commercial use. Unused portions of the credit may carry forward to subsequent tax years until exhausted. The Franchise Tax Board must publish anonymized data on credit usage through 2031, when the program expires.

These provisions modify existing state requirements for the Air Resources Board to regulate emissions from new small off-road engines starting in 2024. The board must consider factors including current emissions levels, zero-emission equipment development timelines, electrical grid impacts, and various use cases when determining technological feasibility. The legislation maintains requirements for the board to identify and provide funding opportunities supporting transitions to zero-emission equipment where feasible.