Bill Text: CA SB1128 | 2011-2012 | Regular Session | Introduced

California Senate Bill 1128 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Energy: alternative energy financing.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2012-09-27 - Chaptered by Secretary of State. Chapter 677, Statutes of 2012. [SB1128 Detail]

Download: California-2011-SB1128-Introduced.html

BILL NUMBER: SB 1128	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Padilla

                        FEBRUARY 21, 2012

   An act to amend Section 26011.8 of the Public Resources Code,
relating to energy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1128, as introduced, Padilla. Energy: alternative energy
financing.
   Existing law authorizes the California Alternative Energy and
Advanced Transportation Financing Authority, until January 1, 2021,
to provide financial assistance in the form of the sales and use tax
exclusion for a project to promote California-based manufacturing,
California-based jobs, the reduction of greenhouse gases, or the
reduction in air and water pollution or energy consumption.
   This bill would additionally authorize the authority to grant the
above financial assistance to projects that promote the utilization
of advanced manufacturing, 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 26011.8 of the Public Resources Code 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)  (1)    For purposes of this
section,  "project" means a project as defined in paragraph
(2) of subdivision (g) of Section 26003.   the following
terms have the following meanings:  
   (1) "Advanced manufacturing" means any of the following: 

   (A) The implementation of process improvements, increasing quality
controls, and installing advanced technologies, as defined by the
authority, and other intelligent production systems, as defined by
the authority.  
   (B) The use of a highly skilled and highly compensated workforce.
 
   (C) The rapid transfer and adoption of newly researched and
developed manufacturing technologies into the manufacturing process.
 
   (2) "Alternative source," in addition to as provided pursuant to
subdivisin (c) of Section 26003, includes advanced electric
distributive generation technology as defined in Section 379.8 of the
Public Utilities Code or energy storage technologies and their
component materials.  
   (3) "Project" means a project as defined in paragraph (2) of
subdivision (g) of Section 26003.  
   (2) For purposes of this section, "alternative sources" also
includes advanced electric distributive generation technology as
defined in Section 379.8 of the Public Utilities Code or energy
storage technologies and their component materials. 
   (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) The extent to which the project utilizes advanced
manufacturing.  
   (4) 
    (5)  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 any federal or state law or
regulation. 
   (5) 
    (6)  The extent of unemployment in the area in which the
project is proposed to be located. 
   (6) 
    (7)  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 as defined in subdivision (g) of Section 26003
approved by the authority by resolution for the sales and use tax
exclusion pursuant to Section 6010.8 of the Revenue and Taxation Code
prior to the effective date of this section, 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 utilized.  
   (4) 
    (5)  The amount of reduction in greenhouse gases, air
pollution, water pollution, or energy consumption.
   (h) Once the exclusions granted pursuant to Section 6010.8 of the
Revenue and Taxation Code for projects approved by the authority
pursuant to this section exceed one hundred million dollars
($100,000,000) annually, the authority shall provide a 20-day notice
to the Legislature prior to making additional approvals pursuant to
this section.
   (i) The authority shall make every effort to expedite the
operation of this section, and shall adopt regulations for purposes
of implementing the section 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 3.5, 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.
   (j) This section shall remain in effect only until January 1,
2021, and as of that date is repealed. The sale or purchase of
tangible personal property of a project approved prior to 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.