BILL NUMBER: AB 199 AMENDED
BILL TEXT
AMENDED IN SENATE SEPTEMBER 10, 2015
AMENDED IN ASSEMBLY AUGUST 25, 2015
AMENDED IN ASSEMBLY AUGUST 18, 2015
AMENDED IN ASSEMBLY JUNE 9, 2015
INTRODUCED BY Assembly Member Eggman
(Coauthors: Assembly Members Dahle, Hadley, Harper, Rendon,
Williams, and Wood)
JANUARY 29, 2015
An act to amend Sections 26003 and 26011.8 of the Public Resources
Code, relating to alternative energy, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 199, as amended, Eggman. Alternative energy: recycled
feedstock.
Existing law establishes the California Alternative Energy and
Advanced Transportation Financing Authority to provide financial
assistance for projects that promote the use of alternative energies.
Existing law, until January 1, 2021, authorizes the authority to
approve a project for financial assistance in the form of a sales and
use tax exclusion. Existing law prohibits the authority from
granting sales and use tax exclusions that exceed $100,000,000 for
each calendar year.
This bill would expand projects eligible for the sales and use tax
exclusion to include projects that process or utilize recycled
feedstock, but would not include a project that processes or utilizes
recycled feedstock in a manner that constitutes disposal.
This bill would incorporate additional changes to Sections 26003
and 26011.8 of the Public Resources Code proposed by AB 1269 that
would become operative only if this bill and AB 1269 are chaptered
and become effective on or before January 1, 2016, and this bill is
chaptered last.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: 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, 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 become inoperative on July 1, 2016, and, as
of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
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 incident incidental
to determining the feasibility of constructing any project or
incident 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. 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 become inoperative on July 1,
2016, and, as of January 1, 2017, 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
is enacted before January 1, 2017,
2021, deletes or extends the dates on
which it becomes inoperative and is repealed. 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, 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 July 1, 2016.
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
incident incidental to determining the
feasibility of constructing any project or incident
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.
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 July
January 1, 2016. 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, 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) (1) Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2016, and, as of January 1, 2017, is
repealed, unless a later enacted statute, that becomes operative on
or before January 1, 2017, deletes or extends the dates on which it
becomes inoperative and is repealed. The sale or purchase of tangible
personal property of a project approved before June 30, 2016, 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.
(2) Notwithstanding paragraph (1), the authority's obligation to
submit to the Legislature a report pursuant to paragraph (2) of
subdivision (i) shall remain operative until the submission of the
report.
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:
(b)
(1) For purposes of this section, "project"
means a project "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 ano
ther 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 subparagraph (B)
of paragraph (8) of subdivision (a) of 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) (1) Except as
provided in paragraph (2), this section shall become inoperative on
July 1, 2016, and, as of January 1, 2017, 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, 2017, 2021,
deletes or extends the dates on which it becomes
inoperative and is repealed. that date. The sale
or purchase of tangible personal property of a project approved
before June 30, 2016, 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.
(2) Notwithstanding paragraph (1), the authority's obligation to
submit to the Legislature a report pursuant to paragraph (2) of
subdivision (i) shall remain operative until the submission of the
report.
SEC. 4. Section 26011.8 of the Public Resources Code, as amended
by Section 4 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,
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
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 a
net benefits test that includes 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 as defined in paragraph (7) of subdivision (a)
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 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 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) 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 the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). For purposes of that act, 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 become operative on July 1, 2016, and 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 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. 4.5. Section 26011.8 of the Public
Resources Code , as amended by Section 4 of Chapter 540
of the Statutes of 2013, is repealed.
26011.8. (a) The purpose of this section is 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. 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 (7) 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 a
net benefits test that includes 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 as defined in paragraph (7) of subdivision (a)
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 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 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) 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 become operative on July 1, 2016, and 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 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. 5. (a) Sections 1.5 and 2.5 of this bill
incorporate amendments to Section 26003 of the Public Resources Code
proposed by both this bill and AB 1269. Sections 1.5 and 2.5 shall
only become operative if (1) both bills are enacted and become
effective on or before January 1, 2016, but this bill becomes
operative first, (2) each bill amends Section 26003 of the Public
Resources Code, and (3) this bill is enacted after AB 1269, in which
case Section 26003 of the Public Resources Code, as amended by
Sections 1 and 2 of this bill, shall remain operative only until the
operative date of AB 1269, at which time Sections 1.5 and 2.5 of this
bill shall become operative.
(b) Sections 3.5 and 4.5 of this bill incorporate amendments to
Section 26011.8 of the Public Resources Code proposed by both this
bill and AB 1269. Sections 3.5 and 4.5 shall only become operative if
(1) both bills are enacted and become effective on or before January
1, 2016, but this bill becomes operative first, (2) each bill amends
Section 26011.8 of the Public Resources Code, and (3) this bill is
enacted after AB 1269, in which case Section 26011.8 of the Public
Resources Code, as amended by Section 3 and 4 of this bill, shall
remain operative only until the operative date of AB 1269, at which
time Section 3.5 and 4.5 of this bill shall become operative.
SEC. 5. SEC. 6. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to provide incentives for the development of projects
that process or utilize recycled feedstock for the protection of the
public health and environment, it is necessary for this act to take
effect immediately.