Bill Text: CA AB1269 | 2015-2016 | Regular Session | Chaptered
Bill Title: Alternative energy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2015-10-11 - Chaptered by Secretary of State - Chapter 788, Statutes of 2015. [AB1269 Detail]
Download: California-2015-AB1269-Chaptered.html
BILL NUMBER: AB 1269 CHAPTERED
BILL TEXT
CHAPTER 788
FILED WITH SECRETARY OF STATE OCTOBER 11, 2015
APPROVED BY GOVERNOR OCTOBER 11, 2015
PASSED THE SENATE SEPTEMBER 10, 2015
PASSED THE ASSEMBLY SEPTEMBER 11, 2015
AMENDED IN SENATE SEPTEMBER 4, 2015
INTRODUCED BY Assembly Member Dababneh
FEBRUARY 27, 2015
An act to amend Section 26003 of, and to amend and repeal Section
26011.8 of, the Public Resources Code, and to amend Section 6010.8 of
the Revenue and Taxation Code, relating to alternative energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1269, Dababneh. Alternative energy.
The California Alternative Energy and Advanced Transportation
Financing Authority Act establishes the California Alternative Energy
and Advanced Transportation Financing Authority. The act authorizes,
until January 1, 2021, the authority to provide financial assistance
in the form of a sales and use tax exclusion for projects, including
those that promote California-based manufacturing, California-based
jobs, the reduction of greenhouse gases, or the reduction in air and
water pollution or energy consumption. The act prohibits the sales
and use tax exclusions from exceeding $100,000,000 for each calendar
year. The act authorizes the authority, until July 1, 2016, to grant
financial assistance in the form of a sales and use tax exclusion for
projects that promote the use of advanced manufacturing.
This bill would extend the authorization to grant the above
financial assistance to projects that promote the use of advanced
manufacturing to January 1, 2021. By extending the eligibility of
projects that promote the use of advanced manufacturing for the sales
and use tax exclusion, which is limited at $100,000,000 annually,
this bill would result in a taxpayer paying a higher tax within the
meaning of Section 3 of Article XIII A of the California
Constitution.
This bill would incorporate additional changes in Section 26003 of
the Public Resources Code, as amended by Section 1 of Chapter 540 of
the Statutes of 2013, proposed by AB 199, that would become
operative only if this bill and AB 199 are both chaptered and become
effective on or before January 1, 2016, and this bill is chaptered
last.
This bill would incorporate additional changes in Section 26003 of
the Public Resources Code, as amended by Section 2 of Chapter 540 of
the Statutes of 2013, proposed by AB 199, that would become
operative only if this bill and AB 199 are both chaptered and become
effective on or before January 1, 2016, and this bill is chaptered
last.
This bill would incorporate additional changes to Section 26011.8
of the Public Resources Code, as amended by Section 3 of Chapter 540
of the Statutes of 2013, proposed by AB 199, that would become
operative only if this bill and AB 199 are both chaptered and become
effective on or before January 1, 2016, and this bill is chaptered
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 26003 of the Public Resources Code, as amended
by Section 1 of Chapter 540 of the Statutes of 2013, is amended to
read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "Advanced manufacturing" means manufacturing processes
that improve existing or create entirely new materials, products, and
processes through the use of science, engineering, or information
technologies, high-precision tools and methods, a high-performance
workforce, and innovative business or organizational models utilizing
any of the following technology areas:
(i) Microelectronics and nanoelectronics, including
semiconductors.
(ii) Advanced materials.
(iii) Integrated computational materials engineering.
(iv) Nanotechnology.
(v) Additive manufacturing.
(vi) Industrial biotechnology.
(B) "Advanced manufacturing" includes any of the following:
(i) Systems that result from substantive advancement, whether
incremental or breakthrough, beyond the current industry standard, in
the production of materials and products. These advancements include
improvements in manufacturing processes and systems that are often
referred to as "smart" or "intelligent" manufacturing systems, which
integrate computational predictability and operational efficiency.
(ii) (I) Sustainable manufacturing systems and manufacturing
technologies that minimize the use of resources while maintaining or
improving cost and performance.
(II) Sustainable manufacturing systems and manufacturing
technologies do not include those required to be undertaken pursuant
to state or federal law or regulations, air district rules or
regulations, memoranda of understanding with a governmental entity,
or legally binding agreements or documents. The State Air Resources
Board shall advise the authority to ensure that the requirements of
this clause are met.
(2) (A) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution and greenhouse gas
emissions reduction, and transportation efficiency.
(B) "Advanced transportation technologies" does not include those
projects required to be undertaken pursuant to state or federal law
or regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents. The State Air Resources Board shall advise
the authority regarding projects that are excluded pursuant to this
subparagraph.
(3) (A) "Alternative sources" means devices or technologies used
for a renewable electrical generation facility, as defined in
paragraph (1) of subdivision (a) of Section 25741, a combined heat
and power system, as defined in Section 2840.2 of the Public
Utilities Code, distributed generation and energy storage
technologies eligible under the self-generation incentive program
pursuant to Section 379.6 of the Public Utilities Code, as determined
by the Public Utilities Commission, or a facility designed for the
production of renewable fuels, the efficient use of which reduce the
use of fossil or nuclear fuels, and energy efficiency devices or
technologies that reduce the need for new electric generation and
reduce emissions of toxic and criteria pollutants and greenhouse
gases.
(B) "Alternative sources" does not include a hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(4) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(5) "Cost" as applied to a project or portion of the project
financed under this division means all or part of the cost of
construction and acquisition of all lands, structures, real or
personal property or an interest in the real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which those buildings or structures may be
moved; the cost of all machinery, equipment, and furnishings,
financing charges, interest prior to, during, and for a period after,
completion of construction as determined by the authority;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; the cost of architectural,
engineering, financial, accounting, auditing and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
constructing any project or incidental to the construction,
acquisition, or financing of a project.
(6) "Financial assistance" includes, but is not limited to, loans,
loan loss reserves, interest rate reductions, proceeds of bonds
issued by the authority, bond insurance, loan guarantees or other
credit enhancements or liquidity facilities, contributions of money,
or a combination thereof, as determined by, and approved by the
resolution of, the board.
(7) (A) "Participating party" means a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other political entity
engaged in the business or operations in the state, whether organized
for profit or not for profit, that applies for financial assistance
from the authority for the purpose of implementing a project.
(B) (i) For purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in
subparagraph (A) that seeks financial assistance pursuant to Section
26011.8.
(ii) For purposes of Section 6010.8 of the Revenue and Taxation
Code, an entity located outside of the state, including an entity
located overseas, is considered to be a participating party and is
eligible to apply for financial assistance pursuant to Section
26011.8 if the participating party commits to, and demonstrates that,
the party will be opening a manufacturing facility in the state.
(iii) It is the intent of the Legislature by adding clause (ii) to
clarify existing law and ensure that an out-of-state entity or
overseas entity is eligible to apply for financial assistance
pursuant to Section 26011.8.
(8) (A) "Project" means a land, building, improvement to the land
or building, rehabilitation, work, property, or structure, real or
personal, stationary or mobile, including, but not limited to,
machinery and equipment utilized in the state, whether or not in
existence or under construction, that utilizes, or is designed to
utilize, an alternative source, or that is utilized for the design,
technology transfer, manufacture, production, assembly, distribution,
or service of advanced transportation technologies or alternative
source components.
(B) "Project," for purposes of Section 26011.8 and Section 6010.8
of the Revenue and Taxation Code, means tangible personal property
that is utilized in the state for the design, manufacture,
production, or assembly of advanced manufacturing, advanced
transportation technologies, or alternative source products,
components, or systems.
(9) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from a project, or the sale, lease, or other disposition of
alternative source or advanced transportation technology facilities,
or the making of loans to finance alternative source or advanced
transportation technology facilities, and any income or revenue
derived from the investment of money in any fund or account of the
authority.
(b) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
SEC. 1.5. Section 26003 of the Public Resources Code, as amended
by Section 1 of Chapter 540 of the Statutes of 2013, is amended to
read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "Advanced manufacturing" means manufacturing processes
that improve existing or create entirely new materials, products, and
processes through the use of science, engineering, or information
technologies, high-precision tools and methods, a high-performance
workforce, and innovative business or organizational models utilizing
any of the following technology areas:
(i) Microelectronics and nanoelectronics, including
semiconductors.
(ii) Advanced materials.
(iii) Integrated computational materials engineering.
(iv) Nanotechnology.
(v) Additive manufacturing.
(vi) Industrial biotechnology.
(B) "Advanced manufacturing" includes any of the following:
(i) Systems that result from substantive advancement, whether
incremental or breakthrough, beyond the current industry standard, in
the production of materials and products. These advancements include
improvements in manufacturing processes and systems that are often
referred to as "smart" or "intelligent" manufacturing systems, which
integrate computational predictability and operational efficiency.
(ii) (I) Sustainable manufacturing systems and manufacturing
technologies that minimize the use of resources while maintaining or
improving cost and performance.
(II) Sustainable manufacturing systems and manufacturing
technologies do not include those required to be undertaken pursuant
to state or federal law or regulations, air district rules or
regulations, memoranda of understanding with a governmental entity,
or legally binding agreements or documents. The State Air Resources
Board shall advise the authority to ensure that the requirements of
this clause are met.
(2) (A) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution and greenhouse gas
emissions reduction, and transportation efficiency.
(B) "Advanced transportation technologies" does not include those
projects required to be undertaken pursuant to state or federal law
or regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents. The State Air Resources Board shall advise
the authority regarding projects that are excluded pursuant to this
subparagraph.
(3) (A) "Alternative sources" means devices or technologies used
for a renewable electrical generation facility, as defined in
paragraph (1) of subdivision (a) of Section 25741, a combined heat
and power system, as defined in Section 2840.2 of the Public
Utilities Code, distributed generation and energy storage
technologies eligible under the self-generation incentive program
pursuant to Section 379.6 of the Public Utilities Code, as determined
by the Public Utilities Commission, or a facility designed for the
production of renewable fuels, the efficient use of which reduce the
use of fossil or nuclear fuels, and energy efficiency devices or
technologies that reduce the need for new electric generation and
reduce emissions of toxic and criteria pollutants and greenhouse
gases.
(B) "Alternative sources" does not include a hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(4) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(5) "Cost" as applied to a project or portion of the project
financed under this division means all or part of the cost of
construction and acquisition of all lands, structures, real or
personal property or an interest in the real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which those buildings or structures may be
moved; the cost of all machinery, equipment, and furnishings,
financing charges, interest prior to, during, and for a period after,
completion of construction as determined by the authority;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; the cost of architectural,
engineering, financial, accounting, auditing and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
constructing any project or incidental to the construction,
acquisition, or financing of a project.
(6) "Financial assistance" includes, but is not limited to, loans,
loan loss reserves, interest rate reductions, proceeds of bonds
issued by the authority, bond insurance, loan guarantees or other
credit enhancements or liquidity facilities, contributions of money,
or a combination thereof, as determined by, and approved by the
resolution of, the board.
(7) (A) "Participating party" means a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other political entity
engaged in the business or operations in the state, whether organized
for profit or not for profit, that applies for financial assistance
from the authority for the purpose of implementing a project.
(B) (i) For purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in
subparagraph (A) that seeks financial assistance pursuant to Section
26011.8.
(ii) For purposes of Section 6010.8 of the Revenue and Taxation
Code, an entity located outside of the state, including an entity
located overseas, is considered to be a participating party and is
eligible to apply for financial assistance pursuant to Section
26011.8 if the participating party commits to, and demonstrates that,
the party will be opening a manufacturing facility in the state.
(iii) It is the intent of the Legislature by adding clause (ii) to
clarify existing law and ensure that an out-of-state entity or
overseas entity is eligible to apply for financial assistance
pursuant to Section 26011.8.
(8) (A) "Project" means a land, building, improvement to the land
or building, rehabilitation, work, property, or structure, real or
personal, stationary or mobile, including, but not limited to,
machinery and equipment utilized in the state, whether or not in
existence or under construction, that utilizes, or is designed to
utilize, an alternative source, or that is utilized for the design,
technology transfer, manufacture, production, assembly, distribution,
or service of advanced transportation technologies or alternative
source components.
(B) "Project," for purposes of Section 26011.8 and Section 6010.8
of the Revenue and Taxation Code, is defined in Section 26011.8.
(9) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from a project, or the sale, lease, or other disposition of
alternative source or advanced transportation technology facilities,
or the making of loans to finance alternative source or advanced
transportation technology facilities, and any income or revenue
derived from the investment of money in any fund or account of the
authority.
(b) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
SEC. 2. Section 26003 of the Public Resources Code, as amended by
Section 2 of Chapter 540 of the Statutes of 2013, is amended to read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution and greenhouse gas
emissions reduction, and transportation efficiency.
(B) "Advanced transportation technologies" does not include those
projects required to be undertaken pursuant to state or federal law
or regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents. The State Air Resources Board shall advise
the authority regarding projects that are excluded pursuant to this
subparagraph.
(2) (A) "Alternative sources" means devices or technologies used
for a renewable electrical generation facility, as defined in
paragraph (1) of subdivision (a) of Section 25741, a combined heat
and power system, as defined in Section 2840.2 of the Public
Utilities Code, distributed generation and energy storage
technologies eligible under the self-generation incentive program
pursuant to Section 379.6 of the Public Utilities Code, as determined
by the Public Utilities Commission, or a facility designed for the
production of renewable fuels, the efficient use of which reduce the
use of fossil or nuclear fuels, and energy efficiency devices or
technologies that reduce the need for new electric generation and
reduce emissions of toxic and criteria pollutants and greenhouse
gases.
(B) "Alternative sources" does not include a hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(3) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(4) "Cost" as applied to a project or portion of the project
financed under this division means all or part of the cost of
construction and acquisition of all lands, structures, real or
personal property or an interest in the real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which those buildings or structures may be
moved; the cost of all machinery, equipment, and furnishings,
financing charges, interest prior to, during, and for a period after,
completion of construction as determined by the authority;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; the cost of architectural,
engineering, financial, accounting, auditing and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
constructing any project or incidental to the construction,
acquisition, or financing of a project.
(5) "Financial assistance" includes, but is not limited to, loans,
loan loss reserves, interest rate reductions, proceeds of bonds
issued by the authority, bond insurance, loan guarantees or other
credit enhancements or liquidity facilities, contributions of money,
or a combination thereof, as determined by, and approved by the
resolution of, the board.
(6) (A) "Participating party" means a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other political entity
engaged in the business or operations in the state, whether organized
for profit or not for profit, that applies for financial assistance
from the authority for the purpose of implementing a project.
(B) (i) For purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in
subparagraph (A) that seeks financial assistance pursuant to Section
26011.8.
(ii) For purposes of Section 6010.8 of the Revenue and Taxation
Code, an entity located outside of the state, including an entity
located overseas, is considered to be a participating party and is
eligible to apply for financial assistance pursuant to Section
26011.8 if the participating party commits to, and demonstrates that,
the party will be opening a manufacturing facility in the state.
(iii) It is the intent of the Legislature by adding clause (ii) to
clarify existing law and ensure that an out-of-state entity or
overseas entity is eligible to apply for financial assistance
pursuant to Section 26011.8.
(7) (A) "Project" means a land, building, improvement to the land
or building, rehabilitation, work, property, or structure, real or
personal, stationary or mobile, including, but not limited to,
machinery and equipment utilized in the state, whether or not in
existence or under construction, that utilizes, or is designed to
utilize, an alternative source, or that is utilized for the design,
technology transfer, manufacture, production, assembly, distribution,
or service of advanced transportation technologies or alternative
source components.
(B) "Project," for purposes of Section 26011.8 and Section 6010.8
of the Revenue and Taxation Code, means tangible personal property
that is utilized in the state for the design, manufacture,
production, or assembly of advanced transportation technologies or
alternative source products, components, or systems.
(8) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from a project, or the sale, lease, or other disposition of
alternative source or advanced transportation technology facilities,
or the making of loans to finance alternative source or advanced
transportation technology facilities, and any income or revenue
derived from the investment of money in any fund or account of the
authority.
(b) This section shall become operative on January 1, 2021.
SEC. 2.5. Section 26003 of the Public Resources Code, as amended
by Section 2 of Chapter 540 of the Statutes of 2013, is amended to
read:
26003. (a) As used in this division, unless the context otherwise
requires:
(1) (A) "Advanced transportation technologies" means emerging
commercially competitive transportation-related technologies
identified by the authority as capable of creating long-term, high
value-added jobs for Californians while enhancing the state's
commitment to energy conservation, pollution and greenhouse gas
emissions reduction, and transportation efficiency.
(B) "Advanced transportation technologies" does not include those
projects required to be undertaken pursuant to state or federal law
or regulations, air district rules or regulations, memoranda of
understanding with a governmental entity, or legally binding
agreements or documents. The State Air Resources Board shall advise
the authority regarding projects that are excluded pursuant to this
subparagraph.
(2) (A) "Alternative sources" means devices or technologies used
for a renewable electrical generation facility, as defined in
paragraph (1) of subdivision (a) of Section 25741, a combined heat
and power system, as defined in Section 2840.2 of the Public
Utilities Code, distributed generation and energy storage
technologies eligible under the self-generation incentive program
pursuant to Section 379.6 of the Public Utilities Code, as determined
by the Public Utilities Commission, or a facility designed for the
production of renewable fuels, the efficient use of which reduce the
use of fossil or nuclear fuels, and energy efficiency devices or
technologies that reduce the need for new electric generation and
reduce emissions of toxic and criteria pollutants and greenhouse
gases.
(B) "Alternative sources" does not include a hydroelectric
facility that does not meet state laws pertaining to the control,
appropriation, use, and distribution of water, including, but not
limited to, the obtaining of applicable licenses and permits.
(3) "Authority" means the California Alternative Energy and
Advanced Transportation Financing Authority established pursuant to
Section 26004, and any board, commission, department, or officer
succeeding to the functions of the authority, or to which the powers
conferred upon the authority by this division shall be given.
(4) "Cost" as applied to a project or portion of the project
financed under this division means all or part of the cost of
construction and acquisition of all lands, structures, real or
personal property or an interest in the real or personal property,
rights, rights-of-way, franchises, easements, and interests acquired
or used for a project; the cost of demolishing or removing any
buildings or structures on land so acquired, including the cost of
acquiring any lands to which those buildings or structures may be
moved; the cost of all machinery, equipment, and furnishings,
financing charges, interest prior to, during, and for a period after,
completion of construction as determined by the authority;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; the cost of architectural,
engineering, financial, accounting, auditing and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incidental to determining the feasibility of
constructing any project or incidental to the construction,
acquisition, or
financing of a project.
(5) "Financial assistance" includes, but is not limited to, loans,
loan loss reserves, interest rate reductions, proceeds of bonds
issued by the authority, bond insurance, loan guarantees or other
credit enhancements or liquidity facilities, contributions of money,
or a combination thereof, as determined by, and approved by the
resolution of, the board.
(6) (A) "Participating party" means a person, federal or state
agency, department, board, authority, or commission, state or
community college, or university, or a city or county, regional
agency, public district, school district, or other political entity
engaged in the business or operations in the state, whether organized
for profit or not for profit, that applies for financial assistance
from the authority for the purpose of implementing a project.
(B) (i) For purposes of Section 6010.8 of the Revenue and Taxation
Code, "participating party" means an entity specified in
subparagraph (A) that seeks financial assistance pursuant to Section
26011.8.
(ii) For purposes of Section 6010.8 of the Revenue and Taxation
Code, an entity located outside of the state, including an entity
located overseas, is considered to be a participating party and is
eligible to apply for financial assistance pursuant to Section
26011.8 if the participating party commits to, and demonstrates that,
the party will be opening a manufacturing facility in the state.
(iii) It is the intent of the Legislature by adding clause (ii) to
clarify existing law and ensure that an out-of-state entity or
overseas entity is eligible to apply for financial assistance
pursuant to Section 26011.8.
(7) (A) "Project" means a land, building, improvement to the land
or building, rehabilitation, work, property, or structure, real or
personal, stationary or mobile, including, but not limited to,
machinery and equipment utilized in the state, whether or not in
existence or under construction, that utilizes, or is designed to
utilize, an alternative source, or that is utilized for the design,
technology transfer, manufacture, production, assembly, distribution,
or service of advanced transportation technologies or alternative
source components.
(B) "Project," for purposes of Section 26011.8 and Section 6010.8
of the Revenue and Taxation Code, is defined in Section 26011.8.
(8) "Revenue" means all rents, receipts, purchase payments, loan
repayments, and all other income or receipts derived by the authority
from a project, or the sale, lease, or other disposition of
alternative source or advanced transportation technology facilities,
or the making of loans to finance alternative source or advanced
transportation technology facilities, and any income or revenue
derived from the investment of money in any fund or account of the
authority.
(b) This section shall become operative on January 1, 2021.
SEC. 3. Section 26011.8 of the Public Resources Code, as amended
by Section 3 of Chapter 540 of the Statutes of 2013, is amended to
read:
26011.8. (a) The purpose of this section is to promote the
creation of California-based manufacturing, California-based jobs,
advanced manufacturing, the reduction of greenhouse gases, or
reductions in air and water pollution or energy consumption. In
furtherance of this purpose, the authority may approve a project for
financial assistance in the form of the sales and use tax exclusion
established in Section 6010.8 of the Revenue and Taxation Code.
(b) For purposes of this section, "project" means a project as
defined in subparagraph (B) of paragraph (8) of subdivision (a) of
Section 26003.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j), and without regard to the
actual date of any transaction between a participating party and the
authority, any project approved by the authority by resolution for
the sales and use tax exclusion pursuant to Section 6010.8 of the
Revenue and Taxation Code before March 24, 2010, shall not be subject
to this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The types of advanced manufacturing, as defined in paragraph
(1) of subdivision (a) of Section 26003, utilized.
(5) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) The exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section shall not exceed one hundred million dollars
($100,000,000) for each calendar year.
(i) (1) The authority shall study the efficacy and cost benefit of
the sales and use tax exemption as it relates to advanced
manufacturing projects. The study shall include the number of jobs
created, the costs of each job, and the annual salary of each job.
The study shall also consider a dynamic analysis of the economic
output to the state that would occur without the sales and use tax
exemption. Before January 1, 2017, the authority shall submit to the
Legislature, consistent with Section 9795 of the Government Code, the
result of the study.
(2) Before January 1, 2015, the authority shall, consistent with
Section 9795 of the Government Code, submit to the Legislature an
interim report on the efficacy of the program conducted pursuant to
this section. The study shall include recommendations on program
changes that would increase the program's efficacy in creating
permanent and temporary jobs, and whether eligibility for the program
should be extended or narrowed to other manufacturing types. The
authority may work with the Legislative Analyst's Office in preparing
the report and its recommendations.
(j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2021, deletes
or extends that date. The sale or purchase of tangible personal
property of a project approved before January 1, 2021, shall continue
to be excluded from sales and use taxes pursuant to Section 6010.8
of the Revenue and Taxation Code for the period of time set forth in
the authority's resolution approving the project pursuant to this
section.
SEC. 3.5. Section 26011.8 of the Public Resources Code, as amended
by Section 3 of Chapter 540 of the Statutes of 2013, is amended to
read:
26011.8. (a) The purpose of this section is to promote the
creation of California-based manufacturing, California-based jobs,
advanced manufacturing, the reduction of greenhouse gases, or
reductions in air and water pollution or energy consumption. In
furtherance of this purpose, the authority may approve a project for
financial assistance in the form of the sales and use tax exclusion
established in Section 6010.8 of the Revenue and Taxation Code.
(b) For purposes of this section, the following terms have the
following meanings:
(1) "Project" means tangible personal property if at least 50
percent of its use is either to process recycled feedstock that is
intended to be reused in the production of another product or using
recycled feedstock in the production of another product or soil
amendment, or tangible personal property that is used in the state
for the design, manufacture, production, or assembly of advanced
manufacturing, advanced transportation technologies, or alternative
source products, components, or systems, as defined in Section 26003.
"Project" does not include tangible personal property that processes
or uses recycled feedstock in a manner that would constitute
disposal as defined in subdivision (b) of Section 40192.
(2) "Recycled feedstock" means materials that would otherwise be
destined for disposal, having completed their intended end use and
product lifecycle.
(3) "Soil amendments" may include "compost," as defined in Section
14525 of the Food and Agricultural Code, "fertilizing material," as
defined in Section 14533 of the Food and Agricultural Code, "gypsum"
or "phosphatic sulfate gypsum," as those terms are defined in Section
14537 of the Food and Agricultural Code, or a substance distributed
for the purpose of promoting plant growth or improving the quality of
crops by conditioning soils through physical means.
(c) The authority shall publish notice of the availability of
project applications and deadlines for submission of project
applications to the authority.
(d) The authority shall evaluate project applications based upon
all of the following criteria:
(1) The extent to which the project develops manufacturing
facilities, or purchases equipment for manufacturing facilities,
located in California.
(2) The extent to which the anticipated benefit to the state from
the project equals or exceeds the projected benefit to the
participating party from the sales and use tax exclusion.
(3) The extent to which the project will create new, permanent
jobs in California.
(4) To the extent feasible, the extent to which the project, or
the product produced by the project, results in a reduction of
greenhouse gases, a reduction in air or water pollution, an increase
in energy efficiency, or a reduction in energy consumption, beyond
what is required by federal or state law or regulation.
(5) The extent of unemployment in the area in which the project is
proposed to be located.
(6) Any other factors the authority deems appropriate in
accordance with this section.
(e) At a duly noticed public hearing, the authority shall approve,
by resolution, project applications for financial assistance.
(f) Notwithstanding subdivision (j), and without regard to the
actual date of any transaction between a participating party and the
authority, any project approved by the authority by resolution for
the sales and use tax exclusion pursuant to Section 6010.8 of the
Revenue and Taxation Code before March 24, 2010, shall not be subject
to this section.
(g) The Legislative Analyst's Office shall report to the Joint
Legislative Budget Committee on the effectiveness of this program, on
or before January 1, 2019, by evaluating factors, including, but not
limited to, the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in California or
relocated to California as a result of this program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The types of advanced manufacturing, as defined in paragraph
(1) of subdivision (a) of Section 26003, utilized.
(5) The amount of reduction in greenhouse gases, air pollution,
water pollution, or energy consumption.
(h) The exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section shall not exceed one hundred million dollars
($100,000,000) for each calendar year.
(i) (1) The authority shall study the efficacy and cost benefit of
the sales and use tax exemption as it relates to advanced
manufacturing projects. The study shall include the number of jobs
created, the costs of each job, and the annual salary of each job.
The study shall also consider a dynamic analysis of the economic
output to the state that would occur without the sales and use tax
exemption. Before January 1, 2017, the authority shall submit to the
Legislature, consistent with Section 9795 of the Government Code, the
result of the study.
(2) Before January 1, 2015, the authority shall, consistent with
Section 9795 of the Government Code, submit to the Legislature an
interim report on the efficacy of the program conducted pursuant to
this section. The study shall include recommendations on program
changes that would increase the program's efficacy in creating
permanent and temporary jobs, and whether eligibility for the program
should be extended or narrowed to other manufacturing types. The
authority may work with the Legislative Analyst's Office in preparing
the report and its recommendations.
(j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2021, deletes
or extends that date. The sale or purchase of tangible personal
property of a project approved before January 1, 2021, shall continue
to be excluded from sales and use taxes pursuant to Section 6010.8
of the Revenue and Taxation Code for the period of time set forth in
the authority's resolution approving the project pursuant to this
section.
SEC. 4. Section 26011.8 of the Public Resources Code, as amended
by Section 4 of Chapter 540 of the Statutes of 2013, is repealed.
SEC. 5. Section 6010.8 of the Revenue and Taxation Code, as
amended by Section 35 of Chapter 677 of the Statutes of 2012, is
amended to read:
6010.8. (a) "Sale" and "purchase" do not include any lease or
transfer of title of tangible personal property constituting any
project to any participating party. As used in this section, "project"
has the meaning specified in subparagraph (B) of paragraph (8) of
subdivision (a) of Section 26003 of the Public Resources Code and
"participating party" has the meaning specified in subparagraph (B)
of paragraph (7) of subdivision (a) of Section 26003 of the Public
Resources Code.
(b) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
that date.
SEC. 6. Section 6010.8 of the Revenue and Taxation Code, as added
by Section 36 of Chapter 677 of the Statutes of 2012, is amended to
read:
6010.8. (a) "Sale" and "purchase" do not include any lease or
transfer of title of tangible personal property constituting any
project to any participating party. As used in this section, "project"
has the meaning specified in subparagraph (B) of paragraph (7) of
subdivision (a) of Section 26003 of the Public Resources Code and
"participating party" has the meaning specified in subparagraph (B)
of paragraph (6) of subdivision (a) of Section 26003 of the Public
Resources Code.
(b) This section shall become operative on January 1, 2021.
SEC. 7. Section 1.5 of this bill incorporates amendments to
Section 26003 of the Public Resources Code, as amended by Section 1
of Chapter 540 of the Statutes of 2013, proposed by this bill and
Assembly Bill 199. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 26003 of the Public Resources Code, as
amended by Section 1 of Chapter 540 of the Statutes of 2013, and (3)
this bill is enacted after Assembly Bill 199, in which case Section
26003 of the Public Resources Code, as amended by Section 1 of
Chapter 540 of the Statutes of 2013, as amended by Assembly Bill 199,
shall remain operative only until the operative date of this bill,
at which time Section 1.5 of this bill shall become operative, and
Section 1 of this bill shall not become operative.
SEC. 8. Section 2.5 of this bill incorporates amendments to
Section 26003 of the Public Resources Code, as amended by Section 2
of Chapter 540 of the Statutes of 2013, proposed by this bill and
Assembly Bill 199. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 26003 of the Public Resources Code, as
amended by Section 2 of Chapter 540 of the Statutes of 2013, and (3)
this bill is enacted after Assembly Bill 199, in which case Section
26003 of the Public Resources Code, as amended by Section 2 of
Chapter 540 of the Statutes of 2013, as amended by Assembly Bill 199,
shall remain operative only until the operative date of this bill,
at which time Section 2.5 of this bill shall become operative, and
Section 2 of this bill shall not become operative.
SEC. 9. Section 3.5 of this bill incorporates amendments to
Section 26011.8 of the Public Resources Code, as amended by Section 3
of Chapter 540 of the Statutes of 2013, proposed by this bill and
Assembly Bill 199. It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2016, (2)
each bill amends Section 26011.8 of the Public Resources Code, as
amended by Section 3 of Chapter 540 of the Statutes of 2013, and (3)
this bill is enacted after Assembly Bill 199, in which case Section
26011.8 of the Public Resources Code, as amended by Section 3 of
Chapter 540 of the Statutes of 2013, as amended by Assembly Bill 199,
shall remain operative only until the operative date of this bill,
at which time Section 3.5 of this bill shall become operative, and
Section 3 of this bill shall not become operative.
