BILL NUMBER: AB 2742	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 5, 2010

INTRODUCED BY   Assembly  Member   Blakeslee
  Members   Blakeslee,   Fuentes,
  and Solorio
    (   Coauthors:   Assembly Members 
 Arambula,   Adams,   Bill Berryhill, 
Buchanan,   Carter,   DeVore,   Emmerson,
  Fletcher,   Furutani,   Gaines, 
 Galgiani,   Gilmore,   Hagman,  
Hall,   Jeffries,   Knight,   Ma, 
 Miller,   Nestande,   V. Manuel Perez, 
 Silva,   Smyth,   Audra Strickland,  
and Villines   ) 
    (   Coauthor:   Senator   Ashburn
  ) 

                        FEBRUARY 19, 2010

   An act to amend Section  2770 of   26003 of,
and to add Section 26011.7 to,  the Public Resources Code,
relating to  mining   energy  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2742, as amended, Blakeslee.  Mining: surface mining
operations.   Energy: California Alternative Energy and
Advanced Transportation Financing Authority.  
   The California Alternative Energy and Advanced Transportation
Financing Authority Act established the California Alternative Energy
and Advanced Transportation Financing Authority. The authority is
authorized to do all things necessary and convenient to carry out the
purposes of the act. The authority is also required to establish a
renewable energy program to provide financial assistance, as defined,
to certain entities for projects to generate new and renewable
energy sources, develop clean and efficient distributed generation,
and demonstrate the economic feasibility of new technologies.
Existing law provides that the transfer of title of tangible personal
property constituting a project under the act to the authority by a
participating party or the lease or transfer of tangible personal
property constituting a project under the act by the authority to a
participating party pursuant to the act is not a "sale" or "purchase"
for the purposes of the Sales and Use Tax Law.  
   This bill would include as a project, machinery or equipment that
is utilized for the design, technology transfer, manufacture,
production, assembly, distribution, or service of an alternative
source product, component, or system. The bill would also expand the
definition of "alternative sources" to include advanced electric
distributive generation technology, as defined, and would expand the
definition of "advanced transportation technologies" to include
energy storage technologies and their component materials. The bill
would require the authority to consider specified criteria in
approving a project for which the purchase, sale, or lease of
tangible personal property qualifies for the sales and use tax
exclusion. The bill would require, when the sales and use tax
exclusion for projects approved by the authority exceeds $100,000,000
annually, the authority to provide a 20-day notice to the
Legislature for additional project approval.  
   Existing law prohibits a person, with exceptions, from conducting
surface mining operations unless a permit is obtained from, a
reclamation plan is submitted to and approved by, and financial
assurances for reclamation have been approved by, the lead agency for
the operation.  
   This bill would make technical, nonsubstantive changes to that
law. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
 yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 26003 of the   Public
Resources Code   is amended to read: 
   26003.  As used in this division, unless the context otherwise
requires:
   (a) "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.
   (b) "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; the cost
of the purchase or sale of energy derived from an alternative source
pursuant to subdivision (g) of Section 26011; 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 incident to
determining the feasibility of constructing any project or incident
to the construction, acquisition, or financing of a project.
   (c) (1) "Alternative sources" means the application of
cogeneration technology, as defined in Section 25134;  advanced
electric distributive generation technology, as defined in Section
379.8 of the Public Utilities Code;  the conservation of energy;
or the use of solar, biomass, wind, geothermal, hydroelectricity
under 30 megawatts, or any other source of energy, the efficient use
of which will reduce the use of fossil and nuclear fuels.
   (2) "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.
   (d) "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 reduction, and
transportation efficiency. Those technologies may include, but are
not limited to, any of the following:
   (1) Intelligent vehicle highway systems.
   (2) Advanced telecommunications for transportation.
   (3) Command, control, and communications for public transit
vehicles and systems.
   (4) Electric vehicles and ultralow-emission vehicles.
   (5) High-speed rail and magnetic levitation passenger systems.
   (6) Fuel cells. 
   (7) Energy storage technologies and their component materials.

   (e) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
   (1) Loans, loan loss reserves, interest rate reductions, proceeds
of bonds issued by the authority, insurance, guarantees or other
credit enhancements or liquidity facilities, contributions of money,
property, labor, or other items of value, or any combination thereof,
as determined by, and approved by the resolution of, the 
board   authority  .
   (2) Any other type of assistance the authority determines is
appropriate.
   (f) "Participating party" means either of the following:
   (1) A person or an entity or group of entities engaged in business
or operations in the state, whether organized for profit or not for
profit, that does either of the following:
   (A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
   (B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
   (2) A public agency or nonprofit corporation that does either of
the following:
   (A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
   (B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
   (g) "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, 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,  alternative source
products, components, or systems,  or an arrangement for the
purchase, including prepayment, or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
   (h) "Public agency" means a federal or state agency, department,
board, authority, state or community college, university, or
commission, or a county, city and county, city, regional agency,
public district, school district, or other political entity.
   (i) (1) "Renewable energy" means a device or technology that
conserves or produces heat, processes heat, space heating, water
heating, steam, space cooling, refrigeration, mechanical energy,
electricity, or energy in any form convertible to these uses, that
does not expend or use conventional energy fuels, and that uses any
of the following electrical generation technologies:
   (A) Biomass.
   (B) Solar thermal.
   (C) Photovoltaic.
   (D) Wind.
   (E) Geothermal.
   (2) For purposes of this subdivision, "conventional energy fuel"
means any fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas, or nuclear fissionable materials.
   (3) Notwithstanding paragraph (1), for purposes of this section,
"renewable energy" also means ultralow-emission equipment for energy
generation based on thermal energy systems such as natural gas
turbines and fuel cells.
   (j) "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.
   SEC. 2.    Section 26011.7 is added to the  
Public Resources Code   , to read:  
   26011.7.  (a) To promote the creation of jobs and reduction of
greenhouse gases, the authority may approve a project for which the
purchase, sale, or lease of tangible personal property qualifies for
the sales and use tax exclusion pursuant to Section 6010.8 of the
Revenue and Taxation Code.
   (b) In approving a project for which the purchase, sale, or lease
of tangible personal property qualifies for the sales and use tax
exclusion pursuant to Section 6010.8 of the Revenue and Taxation
Code, the authority shall consider all of the following criteria:
   (1) 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 exemption exclusion.
   (2) The extent to which the project will create new, permanent
jobs in California.
   (3) The extent to which the project is consistent with local and
state planning.
   (4) The extent to which the project will produce reductions in the
emissions of greenhouse gases as defined in subdivision (g) of
Section 38505 of the Health and Safety Code.
   (5) Any other factors that the authority deems appropriate.
   (c) Once exclusions 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 for additional approvals made pursuant to this section.
 
  SECTION 1.    Section 2770 of the Public Resources
Code is amended to read:
   2770.  (a) Except as provided in this section, a person shall not
conduct surface mining operations unless a permit is obtained from, a
reclamation plan has been submitted to and approved by, and
financial assurances for reclamation have been approved by, the lead
agency for the operation pursuant to this article.
   (b) A person with an existing surface mining operation who has
vested rights pursuant to Section 2776 and who does not have an
approved reclamation plan shall submit a reclamation plan to the lead
agency not later than March 31, 1988. If a reclamation plan
application is not on file by March 31, 1988, the continuation of the
surface mining operation is prohibited until a reclamation plan is
submitted to the lead agency. For purposes of this subdivision,
reclamation plans may consist of all or the appropriate sections of
the plans or written agreements previously approved by the lead
agency or another agency, together with the additional documents
needed to substantially meet the requirements of Sections 2772 and
2773 and the lead agency surface mining ordinance adopted pursuant to
subdivision (a) of Section 2774, provided that all documents which
together were proposed to serve as the reclamation plan are submitted
for approval to the lead agency in accordance with this chapter.
   (c) If a person with an existing surface mining operation has
received lead agency approval of its financial assurances for
reclamation prior to January 1, 1991, the lead agency shall
administratively review those existing financial assurances in
accordance with subdivision (d) prior to January 1, 1992. The review
of existing financial assurances shall not be considered a project
for purposes of Division 13 (commencing with Section 21000). A person
with an existing surface mining operation which does not have
financial assurances that received lead agency approval prior to
January 1, 1991, shall submit financial assurances for reclamation
for review in accordance with subdivision (d).
   (d) The lead agency's review of reclamation plans submitted
pursuant to subdivision (b) or of financial assurances pursuant to
subdivision (c) is limited to whether the plan or the financial
assurances substantially meet the applicable requirements of Sections
2772, 2773, and 2773.1, and the lead agency surface mining ordinance
adopted pursuant to subdivision (a) of Section 2774, but, in any
event, the lead agency shall require that financial assurances for
reclamation be sufficient to perform reclamation of lands remaining
disturbed. Reclamation plans or financial assurances determined to
substantially meet these requirements shall be approved by the lead
agency for purposes of this chapter. Reclamation plans or financial
assurances determined not to substantially meet these requirements
shall be returned to the operator within 60 days. The operator has 60
days to revise the plan or financial assurances to address
identified deficiencies, at which time the revised plan or financial
assurances shall be returned to the lead agency for review and
approval. Except as specified in subdivision (e) or (i), unless the
operator has filed on or before July 1, 1990, an appeal pursuant to
subdivision (e) with regard to nonapproval of the reclamation plan,
or has filed on or before January 1, 1994, an appeal pursuant to
subdivision (e) with regard to nonapproval of financial assurances,
and that appeal is pending before the board, the continuation of the
surface mining operation is prohibited until a reclamation plan and
financial assurances for reclamation are approved by the lead agency.

   (e) A person who, based on the evidence of the record, can
substantiate that a lead agency has either (1) failed to act
according to due process or has relied on considerations not related
to the specific applicable requirements of Sections 2772, 2773, and
2773.1, and the lead agency surface mining ordinance adopted pursuant
to subdivision (a) of Section 2774, in reaching a decision to deny
approval of a reclamation plan or financial assurances for
reclamation, (2) failed to act within a reasonable time of receipt of
a completed application, or (3) failed to review and approve
reclamation plans or financial assurances as required by subdivisions
(c) and (d), may appeal that action or inaction to the board.
   (f) The board may decline to hear an appeal if it determines that
the appeal raises no substantial issues related to the lead agency's
review pursuant to this section.
   (g) An appeal that the board does not decline to hear shall be
scheduled and heard at a public hearing within 45 days of the filing
of the appeal, or a longer period mutually agreed upon by the board
and the person filing the appeal. In hearing an appeal, the board
shall only determine whether the reclamation plan or the financial
assurances substantially meet the applicable requirements of Sections
2772, 2773, 2773.1, and the lead agency surface mining ordinance
adopted pursuant to subdivision (a) of Section 2774. A reclamation
plan or financial assurances determined to meet these requirements
shall be approved. A reclamation plan or financial assurances
determined not to meet these requirements shall be returned to the
person filing the appeal with a notice of deficiencies, and the
person shall be granted, once only, a period of 30 days, or a longer
period mutually agreed upon by the operator and the board, to correct
the noted deficiencies and submit the revised reclamation plan or
the revised financial assurances to the lead agency for review and
approval.
   (h) (1) Within 90 days of a surface mining operation becoming
idle, as defined in Section 2727.1, the operator shall submit to the
lead agency for review and approval, an interim management plan. The
review and approval of an interim management plan shall not be
considered a project for purposes of Division 13 (commencing with
Section 21000). The approved interim management plan shall be
considered an amendment to the surface mining operation's approved
reclamation plan, for purposes of this chapter. The interim
management plan shall provide measures the operator will implement to
maintain the site in compliance with this chapter, including, but
not limited to, all permit conditions.
   (2) The interim management plan may remain in effect for a period
not to exceed five years, at which time the lead agency shall do one
of the following:
   (A) Renew the interim management plan for another period not to
exceed five years, if the lead agency finds that the surface mining
operator has complied fully with the interim management plan.
   (B) Require the surface mining operator to commence reclamation in
accordance with its approved reclamation plan.
   (3) The financial assurances required by Section 2773.1 shall
remain in effect during the period that the surface mining operation
is idle. If the surface mining operation is still idle after the
expiration of its interim management plan, the surface mining
operation shall commence reclamation in accordance with its approved
reclamation plan.
   (4) Within 60 days of the receipt of the interim management plan,
or a longer period mutually agreed upon by the lead agency and the
operator, the lead agency shall review and approve the plan in
accordance with its ordinance adopted pursuant to subdivision (a) of
Section 2774, so long as the plan satisfies the requirements of this
subdivision, and so notify the operator in writing. Otherwise, the
lead agency shall notify the operator in writing of any deficiencies
in the plan. The operator shall have 30 days, or a longer period
mutually agreed upon by the operator and the lead agency, to submit a
revised plan.
   (5) The lead agency shall approve or deny approval of the revised
interim management plan within 60 days of receipt. If the lead agency
denies approval of the revised interim management plan, the operator
may appeal that action to the lead agency's governing body, which
shall schedule a public hearing within 45 days of the filing of the
appeal, or a longer period mutually agreed upon by the operator and
the governing body.
   (6) Unless review of an interim management plan is pending before
the lead agency, or an appeal is pending before the lead agency's
governing body, a surface mining operation that remains idle for over
one year after becoming idle as defined in Section 2727.1 without
obtaining approval of an interim management plan shall be considered
abandoned and the operator shall commence and complete reclamation in
accordance with the approved reclamation plan.
   (i) An enforcement action that may be brought against a surface
mining operation for operating without an approved reclamation plan,
financial assurance, or interim management plan, shall be held in
abeyance pending review pursuant to subdivision (b), (c), (d), or (h)
or the resolution of an appeal filed with the board pursuant to
subdivision (e), or filed with a lead agency governing body pursuant
to subdivision (h).