Amended in Senate September 4, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1269

Introduced by Assembly Member Dababneh

February 27, 2015

An act to amend Section 26003 of, and to amend and repeal Section 26011.8 of, the Public Resources Code, and to amend Section 6010.8 of the Revenue and Taxation Code, relating to alternative energy.

LEGISLATIVE COUNSEL’S DIGEST

AB 1269, as amended, Dababneh. Alternative energy.

The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing Authority. The act authorizes, until January 1, 2021, the authority to provide financial assistance in the form of a sales and use tax exclusion for projects, including those that promote California-based manufacturing, California-based jobs, the reduction of greenhouse gases, or the reduction in air and water pollution or energy consumption. The act prohibits the sales and use tax exclusions from exceeding $100,000,000 for each calendar year. The act authorizes the authority, until July 1, 2016, to grant financial assistance in the form of a sales and use tax exclusion for projects that promote the use of advanced manufacturing.

This bill would extend the authorization to grant the above financial assistance to projects that promote the use of advanced manufacturing to January 1, 2021. By extending the eligibility of projects that promote the use of advanced manufacturing for the sales and use tax exclusion, which is limited at $100,000,000 annually, this bill would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution.

begin insert

This bill would incorporate additional changes in Section 26003 of the Public Resources Code, as amended by Section 1 of Chapter 540 of the Statutes of 2013, proposed by AB 199, that would become operative only if this bill and AB 199 are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert begin insert

This bill would incorporate additional changes in Section 26003 of the Public Resources Code, as amended by Section 2 of Chapter 540 of the Statutes of 2013, proposed by AB 199, that would become operative only if this bill and AB 199 are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert begin insert

This bill would incorporate additional changes to Section 26011.8 of the Public Resources Code, as amended by Section 3 of Chapter 540 of the Statutes of 2013, proposed by AB 199, that would become operative only if this bill and AB 199 are both chaptered and become effective on or before January 1, 2016, and this bill is chaptered last.

end insert

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 begin delete incident end delete begin insert incidental end insert to determining the
feasibility of constructing any project or begin delete incident end delete begin insert incidental end insert 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.

(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 remain in effect only until January 1, 2021,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2021, deletes or extends that date.

begin insert

begin insert SEC. 1.5. end insert   

end insert

begin insert Section 26003 of the end insert begin insert Public Resources Code end insert begin insert , as
amended by Section 1 of Chapter 540 of the Statutes of 2013, is
amended to read: end insert

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 begin delete incident end delete begin insert incidental end insert to determining the
feasibility of constructing any project or begin delete incident end delete begin insert incidental end insert 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, begin delete 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. end delete begin insert is defined in Section 26011.8. end insert

(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 begin delete become inoperative on July 1, 2016, and,
as of January 1, 2017, end delete begin insert remain in effect only until January 1, 2021,
and as of that date end insert is repealed, unless a later enacted statute, that
begin delete becomes operative on or end delete begin insert is enacted end insert before January 1, begin delete 2017, end delete begin insert 2021, end insert
deletes or extends begin delete the dates on which it becomes inoperative and
is repealed. end delete begin insert that date. end insert

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 begin delete incident end delete begin insert incidental end insert to determining the
feasibility of constructing any project or begin delete incident end delete begin insert incidental end insert 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.

(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 January 1, 2021.

begin insert

begin insert SEC. 2.5. end insert   

end insert

begin insert Section 26003 of the end insert begin insert Public Resources Code end insert begin insert , as
amended by Section 2 of Chapter 540 of the Statutes of 2013, is
amended to read: end insert

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 begin delete incident end delete begin insert incidental end insert to determining the
feasibility of constructing any project or begin delete incident end delete begin insert incidental end insert 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, begin delete 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. end delete begin insert is defined
in Section 26011.8. end insert

(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 begin delete July end delete begin insert January end insert 1, begin delete 2016. end delete
begin insert 2021. end insert

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, “project” means a project as
defined in subparagraph (B) of paragraph (8) 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
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) 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, 2021, deletes or extends
that date. 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.

begin insert

begin insert SEC. 3.5. end insert   

end insert

begin insert Section 26011.8 of the end insert begin insert Public Resources Code end insert begin insert , as
amended by Section 3 of Chapter 540 of the Statutes of 2013, is
amended to read: end insert

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.

begin insert

(b) For purposes of this section, the following terms have the
following meanings:

end insert begin delete

(b) For purposes of this section, “project” means a project

end delete

begin insert (1) end insert begin insert   end insert begin insert “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, end insert as defined
in begin delete subparagraph (B) of paragraph (8) of subdivision (a) of end delete Section
26003. begin insert “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. end insert

begin insert

(2) “Recycled feedstock” means materials that would otherwise
be destined for disposal, having completed their intended end use
and product lifecycle.

end insert begin insert

(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.

end insert

(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)  begin delete (1) end delete begin delete   end delete begin delete Except as provided in paragraph (2), this section shall
become inoperative on July 1, 2016, and, as of January 1, 2017, end delete
begin insert This section shall remain in effect only until January 1, 2021, and
as of that date end insert is repealed, unless a later enacted statute, that
becomes operative on or before January 1, begin delete 2017, end delete begin insert 2021, end insert deletes or
extends begin delete the dates on which it becomes inoperative and is repealed. end delete
begin insert that date. end insert The sale or purchase of tangible personal property of a
project approved before begin delete June 30, 2016, end delete begin insert January 1, 2021, end insert 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.

begin delete

(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.

end delete

SEC. 4.  

Section 26011.8 of the Public Resources Code, as
amended by Section 4 of Chapter 540 of the Statutes of 2013, is
repealed.

SEC. 5.  

Section 6010.8 of the Revenue and Taxation Code, as
amended by Section 35 of Chapter 677 of the Statutes of 2012, is
amended to read:

6010.8.  

(a) “Sale” and “purchase” do not include any lease or
transfer of title of tangible personal property constituting any
project to any participating party. As used in this section, “project”
has the meaning specified in subparagraph (B) of paragraph (8)
of subdivision (a) of Section 26003 of the Public Resources Code
and “participating party” has the meaning specified in subparagraph
(B) of paragraph (7) of subdivision (a) of Section 26003 of the
Public Resources Code.

(b) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2021, deletes or extends that date.

SEC. 6.  

Section 6010.8 of the Revenue and Taxation Code, as
added by Section 36 of Chapter 677 of the Statutes of 2012, is
amended to read:

6010.8.  

(a) “Sale” and “purchase” do not include any lease or
transfer of title of tangible personal property constituting any
project to any participating party. As used in this section, “project”
has the meaning specified in subparagraph (B) of paragraph (7)
of subdivision (a) of Section 26003 of the Public Resources Code
and “participating party” has the meaning specified in subparagraph
(B) of paragraph (6) of subdivision (a) of Section 26003 of the
Public Resources Code.

(b) This section shall become operative on January 1, 2021.

begin insert

begin insert SEC. 7. end insert   

end insert begin insert

Section 1.5 of this bill incorporates amendments to
Section 26003 of the Public Resources Code, as amended by
Section 1 of Chapter 540 of the Statutes of 2013, proposed by this
bill and Assembly Bill 199. It shall only become operative if (1)
both bills are enacted and become effective on or before January
1, 2016, (2) each bill amends Section 26003 of the Public
Resources Code, as amended by Section 1 of Chapter 540 of the
Statutes of 2013, and (3) this bill is enacted after Assembly Bill
199, in which case Section 26003 of the Public Resources Code,
as amended by Section 1 of Chapter 540 of the Statutes of 2013,
as amended by Assembly Bill 199, shall remain operative only
until the operative date of this bill, at which time Section 1.5 of
this bill shall become operative, and Section 1 of this bill shall not
become operative.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert begin insert

Section 2.5 of this bill incorporates amendments to
Section 26003 of the Public Resources Code, as amended by
Section 2 of Chapter 540 of the Statutes of 2013, proposed by this
bill and Assembly Bill 199. It shall only become operative if (1)
both bills are enacted and become effective on or before January
1, 2016, (2) each bill amends Section 26003 of the Public
Resources Code, as amended by Section 2 of Chapter 540 of the
Statutes of 2013, and (3) this bill is enacted after Assembly Bill
199, in which case Section 26003 of the Public Resources Code,
as amended by Section 2 of Chapter 540 of the Statutes of 2013,
as amended by Assembly Bill 199, shall remain operative only
until the operative date of this bill, at which time Section 2.5 of
this bill shall become operative, and Section 2 of this bill shall not
become operative.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert begin insert

Section 3.5 of this bill incorporates amendments to
Section 26011.8 of the Public Resources Code, as amended by
Section 3 of Chapter 540 of the Statutes of 2013, proposed by this
bill and Assembly Bill 199. It shall only become operative if (1)
both bills are enacted and become effective on or before January
1, 2016, (2) each bill amends Section 26011.8 of the Public
Resources Code, as amended by Section 3 of Chapter 540 of the
Statutes of 2013, and (3) this bill is enacted after Assembly Bill
199, in which case Section 26011.8 of the Public Resources Code,
as amended by Section 3 of Chapter 540 of the Statutes of 2013,
as amended by Assembly Bill 199, shall remain operative only
until the operative date of this bill, at which time Section 3.5 of
this bill shall become operative, and Section 3 of this bill shall not
become operative.

end insert