Bill Text: CA AB796 | 2011-2012 | Regular Session | Enrolled
Bill Title: Financial assistance: Clean Energy Economy and Jobs
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Vetoed) 2012-09-27 - Consideration of Governor's veto pending. [AB796 Detail]
Download: California-2011-AB796-Enrolled.html
BILL NUMBER: AB 796 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 29, 2012
PASSED THE ASSEMBLY AUGUST 30, 2012
AMENDED IN SENATE AUGUST 24, 2012
AMENDED IN SENATE AUGUST 6, 2012
AMENDED IN SENATE JUNE 26, 2012
AMENDED IN SENATE JUNE 12, 2012
AMENDED IN SENATE FEBRUARY 27, 2012
AMENDED IN SENATE SEPTEMBER 2, 2011
AMENDED IN SENATE JULY 13, 2011
AMENDED IN ASSEMBLY MAY 11, 2011
AMENDED IN ASSEMBLY APRIL 25, 2011
INTRODUCED BY Assembly Member Blumenfield
(Coauthor: Assembly Member Wieckowski)
(Coauthor: Senator Pavley)
FEBRUARY 17, 2011
An act to add and repeal Chapter 5 (commencing with Section 26090)
of Division 16 of the Public Resources Code, relating to financial
assistance.
LEGISLATIVE COUNSEL'S DIGEST
AB 796, Blumenfield. Financial assistance: Clean Energy Economy
and Jobs Incentive Program.
Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority and requires the
authority to provide financial assistance in the form of a sales and
use tax exclusion for applicants to promote the creation of
California-based manufacturing, California-based jobs, the reduction
of greenhouse gases, or reductions in air and water pollution or
energy consumption.
This bill would require the authority to establish the Clean
Energy Economy and Jobs Incentive Program to provide financial
assistance in the form of specified financing mechanisms to eligible
California-based entities for the manufacturing of an eligible clean
energy technology project, as specified. The bill would establish the
Clean Energy Economy and Jobs Incentive Program Fund in the State
Treasury and would, upon appropriation by the Legislature, authorize
the authority to expend moneys in the fund to implement the program.
The bill would repeal the program on January 1, 2018.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 5 (commencing with Section 26090) is added to
Division 16 of the Public Resources Code, to read:
CHAPTER 5. CLEAN ENERGY ECONOMY AND JOBS INCENTIVE PROGRAM
26090. As used in this division, the following terms mean the
following:
(a) (1) "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.
(2) "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 to ensure that the requirements of this paragraph are
met.
(b) "California-based entity" means a corporation or other
business form organized for the transaction of business in California
that has an office in California, and manufactures or plans to
manufacture in California, a product in an eligible technology that
qualifies for financial assistance as determined by the authority.
(c) "Eligible clean energy technology" means either of the
following:
(1) (A) A device or technology used for a renewable electrical
generation facility, as defined in paragraph (1) of subdivision (a)
of Section 25741.
(B) A combined heat and power system, as defined in Section 2840.2
of the Public Utilities Code.
(C) 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.
(D) A facility designed for the production of renewable fuels, the
efficient use of which reduces the use of fossil or nuclear fuels.
(E) Energy efficiency devices or technologies that reduce the need
for new electric generation and reduce emissions of toxic and
criteria pollutants, and greenhouse gases.
(2) Advanced transportation technologies.
(d) "Financial assistance" means loans, loan loss reserves,
interest rate reductions, insurance, guarantees or other credit
enhancements or liquidity facilities, contributions of money,
property, labor, or other terms of value, or any combination thereof,
as determined by the resolutions of the authority.
(e) "Financial institution" means an insured depository
institution or insured credit union, as those terms are defined in
Section 103 of the federal Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. Sec. 4702).
(f) "Manufacture" means to make, process, prepare, alter, repair,
or finish in whole or in part, or to assemble.
(g) "Program" means the Clean Energy Economy and Jobs Incentive
Program established pursuant to Section 26091.
(h) "Project total" means the total capital expenses for an
applicant's project.
26091. (a) The authority shall establish the Clean Energy Economy
and Jobs Incentive Program to provide financial assistance to
eligible California-based entities for the manufacturing of eligible
technologies.
(b) The authority shall evaluate project applications based upon
the net benefits test pursuant to Section 26011.8, which may include,
but are not limited to, the following criteria:
(1) Meets or exceeds the state's energy and environmental goals.
(2) Promotes in-state commercialization and manufacturing capacity
that will establish California as a leader in clean energy
technologies.
(3) Supports in-state manufacturing of eligible clean energy
technology on a scale that is capable of meeting a market demand.
(4) Maximizes the leveraging of other funding sources.
(c) A project is eligible for financial assistance if the
applicant demonstrates, to the satisfaction of the authority, all of
the following:
(1) The eligible clean energy technology is significantly more
energy efficient or cost effective than current comparable products
commercially available and has been researched and developed.
(2) The project is for the full-scale commercialization or
manufacture of a product to be used as a part of an eligible clean
energy technology within three years of the date of the submission of
the application.
(3) The financial assistance would accelerate the construction or
expansion of the project.
(4) The eligible clean technology is manufactured by a
California-based entity that is transitioning from product
development to commercialization.
(5) Any other criteria established by the authority.
(d) (1) The financial assistance provided to an applicant shall
not exceed five million dollars ($5,000,000), and shall not be worth
more than 25 percent of the project total as provided by the
applicant.
(2) Notwithstanding paragraph (1), the authority may provide
financial assistance of up to ten million dollars ($10,000,000) if
the authority provides notice to the chair of the Joint Legislative
Budget Committee and the chair concurs with the provision of the
financial assistance within 30 days of the notice.
(e) The financial assistance provided pursuant to this chapter
shall only be provided in partnership with a financial institution.
26092. (a) This chapter does not require the authority to
implement its provisions until the Legislature appropriates funds to
the authority for the purposes of this chapter and private or federal
funds are made available to the authority for the purpose of
developing clean energy technology.
(b) On or before January 1, 2015, the Legislative Analyst's Office
shall report to the Joint Legislative Budget Committee on the
effectiveness of the program by evaluating factors, including, but
not limited to, all of the following:
(1) The number of jobs created by the program in California.
(2) The number of businesses that have remained in, or relocated
to, California as a result of the program.
(3) The amount of state and local revenue and economic activity
generated by the program.
(4) The amount of reduction in greenhouse gas emissions, air
pollution, water pollution, and energy consumption.
26093. The authority shall make every effort to expedite the
operation of this chapter, and shall adopt regulations for purposes
of this chapter as emergency regulations in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. For purposes of that chapter, 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.
26094. (a) The Clean Energy Economy and Jobs Incentive Program
Fund is hereby established in the State Treasury, and upon
appropriation by the Legislature, shall be expended by the authority
for the purposes of this chapter.
(b) Of the moneys appropriated pursuant to subdivision (a), up to
three hundred thousand dollars ($300,000) may be expended by the
authority for the initial administrative costs in implementing this
chapter.
(c) The authority may fix fees and other charges to reimburse the
costs of the authority in its administration of this chapter.
26095. This chapter shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
