California Legislature—2013–14 Regular Session

Assembly BillNo. 1422


Introduced by Committee on Jobs, Economic Development, and the Economy (Medina (Chair), Daly, Fong, Fox, and V. Manuel Pérez)

March 21, 2013


An act to amend Section 26003 of the Public Resources Code, and to repeal Section 1 of Chapter 677 of the Statutes of 2012, relating to energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1422, as introduced, Committee on Jobs, Economic Development, and the Economy. California Alternative Energy and Advanced Transportation Financing Authority: participating party.

(1) Existing law, the California Alternative Energy and Advanced Transportation Financing Authority Act, establishes the California Alternative Energy and Advanced Transportation Financing Authority and requires the authority to establish programs to provide financial assistance to participating parties for projects related to sustainable and renewable energy sources, energy efficiency, and advanced transportation projects. The act provides financial assistance, in the form of a sales and use tax exclusion, to participating parties for these types of projects.

This bill would clarify that for purposes of the sales and use tax exclusion, 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 if the participating party commits to, and demonstrates that the participating party will be opening a manufacturing facility in the state.

(2) Existing law requires the Governor’s Office of Business and Economic Development to review and identify efficient and cost-effective methods for the state to create jobs in advanced manufacturing, as specified, and to report its findings to the Legislature on or before January 1, 2017.

This bill would repeal this reporting requirement.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 26003 of the Public Resources Code, as
2amended by Section 5 of Chapter 677 of the Statutes of 2012, is
3amended to read:

4

26003.  

(a) As used in this division, unless the context
5otherwise requires:

6(1) (A) “Advanced manufacturing” means manufacturing
7processes that improve existing, or create entirely new materials,
8products, and processes through the use of science, engineering,
9or information technologies, high-precision tools and methods, a
10high-performance workforce, and innovative business or
11organizational models utilizing any of the following technology
12areas:

13(i) Micro- and nanoelectronics, including semiconductors.

14(ii) Advanced materials.

15(iii) Integrated computational materials engineering.

16(iv) Nanotechnology.

17(v) Additive manufacturing.

18(vi) Industrial biotechnology.

19(B) “Advanced manufacturing” includes all of the following:

20(i) Systems that result from substantive advancement, whether
21incremental or breakthrough, beyond the current industry standard,
22in the production of materials and products. These advancements
23include improvements in manufacturing processes and systems
24that are often referred to as “smart” or “intelligent” manufacturing
25systems, which integrate computational predictability and
26operational efficiency.

27(ii) (I) Sustainable manufacturing systems and manufacturing
28technologies that minimize the use of resources while maintaining
29or improving cost and performance.

P3    1(II) Sustainable manufacturing systems and manufacturing
2technologies do not include those required to be undertaken
3pursuant to state or federal law or regulations, air district rules or
4regulations, memoranda of understanding with a governmental
5entity, or legally binding agreements or documents. The State Air
6Resources Board shall advise the authority to ensure that the
7requirements of this clause are met.

8(2) (A) “Advanced transportation technologies” means
9emerging commercially competitive transportation-related
10technologies identified by the authority as capable of creating
11long-term, high value-added jobs for Californians while enhancing
12the state’s commitment to energy conservation, pollution and
13greenhouse gas emissions reduction, and transportation efficiency.

14(B) “Advanced transportation technologies” does not include
15those projects required to be undertaken pursuant to state or federal
16law or regulations, air district rules or regulations, memoranda of
17understanding with a governmental entity, or legally binding
18agreements or documents. The State Air Resources Board shall
19advise the authority regarding projects that are excluded pursuant
20to this subparagraph.

21(3) (A) “Alternative sources” means devices or technologies
22used for a renewable electrical generation facility, as defined in
23paragraph (1) of subdivision (a) of Section 25741, a combined
24heat and power system, as defined in Section 2840.2 of the Public
25Utilities Code, distributed generation and energy storage
26technologies eligible under the self-generation incentive program
27pursuant to Section 379.6 of the Public Utilities Code, as
28determined by the Public Utilities Commission, or a facility
29designed for the production of renewable fuels, the efficient use
30of which reduce the use of fossil or nuclear fuels, and energy
31efficiency devices or technologies that reduce the need for new
32electric generation and reduce emissions of toxic and criteria
33pollutants and greenhouse gases.

34(B) “Alternative sources” does not include a hydroelectric
35facility that does not meet state laws pertaining to the control,
36appropriation, use, and distribution of water, including, but not
37limited to, the obtaining of applicable licenses and permits.

38(4) “Authority” means the California Alternative Energy and
39Advanced Transportation Financing Authority established pursuant
40to Section 26004, and any board, commission, department, or
P4    1officer succeeding to the functions of the authority, or to which
2the powers conferred upon the authority by this division shall be
3given.

4(5) “Cost” as applied to a project or portion of the project
5financed under this division means all or part of the cost of
6construction and acquisition of all lands, structures, real or personal
7property or an interest in the real or personal property, rights,
8rights-of-way, franchises, easements, and interests acquired or
9used for a project; the cost of demolishing or removing any
10buildings or structures on land so acquired, including the cost of
11acquiring any lands to which those buildings or structures may be
12moved; the cost of all machinery, equipment, and furnishings,
13financing charges, interest prior to, during, and for a period after,
14completion of construction as determined by the authority;
15provisions for working capital; reserves for principal and interest
16and for extensions, enlargements, additions, replacements,
17renovations, and improvements; the cost of architectural,
18engineering, financial, accounting, auditing and legal services,
19plans, specifications, estimates, administrative expenses, and other
20expenses necessary or incident to determining the feasibility of
21constructing any project or incident to the construction, acquisition,
22or financing of a project.

23(6) “Financial assistance” includes, but is not limited to, loans,
24loan loss reserves, interest rate reductions, proceeds of bonds issued
25by the authority, bond insurance, loan guarantees or other credit
26enhancements or liquidity facilities, contributions of money, or a
27combination thereof, as determined by, and approved by the
28resolution of, the board.

29(7) (A) “Participating party” means a person, federal or state
30agency, department, board, authority, or commission, state or
31community college, or university, or a city or county, regional
32agency, public district, school district, or other political entity
33engaged in the business or operations in the state, whether
34organized for profit or not for profit, that applies for financial
35assistance from the authority for the purpose of implementing a
36project.

37(B) begin insert(i)end insertbegin insertend insertFor the purposes of Section 6010.8 of the Revenue and
38Taxation Code, “participating party” means an entity specified in
39subparagraph (A) that seeks financial assistance pursuant to Section
4026011.8.

begin insert

P5    1(ii) For purposes of Section 6010.8 of the Revenue and Taxation
2Code, an entity located outside of the state, including an entity
3located overseas, is considered to be a participating party and is
4eligible to apply for financial assistance pursuant to Section
526011.8 if the participating party commits to, and demonstrates
6that, the party will be opening a manufacturing facility in the state.

end insert
begin insert

7(iii) It is the intent of the Legislature by adding clause (ii) to
8clarify existing law and ensure that an out-of-state entity or
9overseas entity is eligible to apply for financial assistance pursuant
10to Section 26011.8.

end insert

11(8) (A) “Project” means a land, building, improvement to the
12land or building, rehabilitation, work, property, or structure, real
13or personal, stationary or mobile, including, but not limited to,
14machinery and equipment, whether or not in existence or under
15construction, that utilizes, or is designed to utilize, an alternative
16source, or that is utilized for the design, technology transfer,
17manufacture, production, assembly, distribution, or service of
18advanced transportation technologies or alternative source
19components.

20(B) “Project,” for the purposes of Section 26011.8 and Section
216010.8 of the Revenue and Taxation Code, means any tangible
22personal property that is utilized for the design, manufacture,
23production, or assembly of advanced manufacturing, advanced
24transportation technologies, or alternative source products,
25components, or systems.

26(9) “Revenue” means all rents, receipts, purchase payments,
27loan repayments, and all other income or receipts derived by the
28authority from a project, or the sale, lease, or other disposition of
29alternative source or advanced transportation technology facilities,
30or the making of loans to finance alternative source or advanced
31transportation technology facilities, and any income or revenue
32 derived from the investment of money in any fund or account of
33the authority.

34(b) This section shall become inoperative on July 1, 2016, and,
35as of January 1, 2017, is repealed, unless a later enacted statute,
36that becomes operative on or before January 1, 2017, deletes or
37extends the dates on which it becomes inoperative and is repealed.

38

SEC. 2.  

Section 26003 of the Public Resources Code, as added
39by Section 6 of Chapter 677 of the Statutes of 2012, is amended
40to read:

P6    1

26003.  

(a) As used in this division, unless the context
2otherwise requires:

3(1) (A)  “Advanced transportation technologies” means
4emerging commercially competitive transportation-related
5technologies identified by the authority as capable of creating
6long-term, high value-added jobs for Californians while enhancing
7the state’s commitment to energy conservation, pollution and
8greenhouse gas emissions reduction, and transportation efficiency.

9(B) “Advanced transportation technologies” does not include
10those projects required to be undertaken pursuant to state or federal
11law or regulations, air district rules or regulations, memoranda of
12understanding with a governmental entity, or legally binding
13agreements or documents. The State Air Resources Board shall
14advise the authority regarding projects that are excluded pursuant
15to this subparagraph.

16(2) (A) “Alternative sources” means devices or technologies
17used for a renewable electrical generation facility, as defined in
18paragraph (1) of subdivision (a) of Section 25741, a combined
19heat and power system, as defined in Section 2840.2 of the Public
20Utilities Code, distributed generation and energy storage
21technologies eligible under the self-generation incentive program
22pursuant to Section 379.6 of the Public Utilities Code, as
23determined by the Public Utilities Commission, or a facility
24designed for the production of renewable fuels, the efficient use
25of which reduce the use of fossil or nuclear fuels, and energy
26efficiency devices or technologies that reduce the need for new
27electric generation and reduce emissions of toxic and criteria
28pollutants and greenhouse gases.

29(B) “Alternative sources” does not include a hydroelectric
30facility that does not meet state laws pertaining to the control,
31appropriation, use, and distribution of water, including, but not
32limited to, the obtaining of applicable licenses and permits.

33(3) “Authority” means the California Alternative Energy and
34Advanced Transportation Financing Authority established pursuant
35to Section 26004, and any board, commission, department, or
36officer succeeding to the functions of the authority, or to which
37the powers conferred upon the authority by this division shall be
38given.

39(4) “Cost” as applied to a project or portion of the project
40financed under this division means all or part of the cost of
P7    1construction and acquisition of all lands, structures, real or personal
2property or an interest in the real or personal property, rights,
3rights-of-way, franchises, easements, and interests acquired or
4used for a project; the cost of demolishing or removing any
5buildings or structures on land so acquired, including the cost of
6acquiring any lands to which those buildings or structures may be
7moved; the cost of all machinery, equipment, and furnishings,
8financing charges, interest prior to, during, and for a period after,
9completion of construction as determined by the authority;
10provisions for working capital; reserves for principal and interest
11and for extensions, enlargements, additions, replacements,
12renovations, and improvements; the cost of architectural,
13engineering, financial, accounting, auditing and legal services,
14plans, specifications, estimates, administrative expenses, and other
15expenses necessary or incident to determining the feasibility of
16constructing any project or incident to the construction, acquisition,
17or financing of a project.

18(5) “Financial assistance” includes, but is not limited to, loans,
19loan loss reserves, interest rate reductions, proceeds of bonds issued
20by the authority, bond insurance, loan guarantees or other credit
21enhancements or liquidity facilities, contributions of money, or a
22combination thereof, as determined by, and approved by the
23resolution of, the board.

24(6) (A) “Participating party” means a person, federal or state
25agency, department, board, authority, or commission, state or
26community college, or university, or a city or county, regional
27agency, public district, school district, or other political entity
28engaged in the business or operations in the state, whether
29organized for profit or not for profit, that applies for financial
30assistance from the authority for the purpose of implementing a
31project.

32(B) begin insert(i)end insertbegin insertend insertFor the purposes of Section 6010.8 of the Revenue and
33Taxation Code, “participating party” means an entity specified in
34subparagraph (A) that seeks financial assistance pursuant to Section
3526011.8.

begin insert

36(ii) For purposes of Section 6010.8 of the Revenue and Taxation
37Code, an entity located outside of the state, including an entity
38located overseas, is considered to be a participating party and is
39eligible to apply for financial assistance pursuant to Section
P8    126011.8 if the participating party commits to, and demonstrates
2that, the party will be opening a manufacturing facility in the state.

end insert
begin insert

3(iii) It is the intent of the Legislature by adding clause (ii) to
4clarify existing law and ensure that an out-of-state entity or
5overseas entity is eligible to apply for financial assistance pursuant
6to Section 26011.8.

end insert

7(7) (A) “Project” means a land, building, improvement to the
8land or building, rehabilitation, work, property, or structure, real
9or personal, stationary or mobile, including, but not limited to,
10machinery and equipment, whether or not in existence or under
11construction, that utilizes, or is designed to utilize, an alternative
12source, or that is utilized for the design, technology transfer,
13manufacture, production, assembly, distribution, or service of
14advanced transportation technologies or alternative source
15components.

16(B) “Project,” for the purposes of Section 26011.8 and Section
176010.8 of the Revenue and Taxation Code, means any tangible
18personal property that is utilized for the design, manufacture,
19production, or assembly of advanced transportation technologies
20or alternative source products, components, or systems.

21(8) “Revenue” means all rents, receipts, purchase payments,
22loan repayments, and all other income or receipts derived by the
23authority from a project, or the sale, lease, or other disposition of
24alternative source or advanced transportation technology facilities,
25or the making of loans to finance alternative source or advanced
26transportation technology facilities, and any income or revenue
27derived from the investment of money in any fund or account of
28the authority.

29(b) This section shall become operative on July 1, 2016.

30

SEC. 3.  

Section 1 of Chapter 677 of the Statutes of 2012 is
31repealed.

begin delete
32

SECTION 1.  

(a) The Governor’s Office of Business and
33Economic Development, established pursuant to Section 12096.2
34of the Government Code, shall review and identify efficient and
35cost-effective methods for the state to create jobs in advanced
36manufacturing. In undertaking this review, the office shall consult
37with the Legislative Analyst’s Office and engage other government
38and private sector stakeholders who have expertise in
39manufacturing, workforce development, education, and economic
40development. The Governor’s Office of Business and Economic
P9    1Development shall report its findings to the Legislature on or before
2January 1, 2017.

3(b) A report submitted pursuant to subdivision (a) shall be
4submitted in compliance with Section 9795 of the Government
5Code.

end delete


O

    99