AB 1683, as amended, Eggman. Alternative energy financing.
The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing
begin delete Authority.end delete 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, advanced manufacturing, 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.
begin delete bill would instead prohibit the sales and use tax exclusions from exceeding $200,000,000 for each calendar year. Theend delete bill would specify that if less than begin delete $200,000,000end delete is granted in a calendar year, the unallocated amount may roll over to the following calendar year.
This bill would take effect immediately as a tax levy.end delete
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) There is in the state government the California
9Alternative Energy and Advanced Transportation Financing
10Authority. The authority constitutes a public instrumentality and
11the exercise by the authority of powers conferred by this division
12is the performance of an essential public function.
13(b) The authority shall consist of
begin delete fiveend delete members, as follows:
14(1) The Director of Finance.
15(2) The Chairperson
of the State Energy Resources Conservation
16and Development Commission.
17(3) The President of the Public Utilities Commission.
18(4) The Controller.
19(5) The Treasurer, who shall serve as the chairperson of the
25(c) The members listed in
paragraphs (1) to (5), inclusive, of
26subdivision (b) may each designate a deputy or clerk in his or her
27agency to act for and represent the member at all meetings of the
29(d) The first meeting of the authority shall be convened by the
Section 26011.8 of the Public Resources Code is
3amended to read:
(a) The purpose of this section is to promote the
5creation of California-based manufacturing, California-based jobs,
6advanced manufacturing, the reduction of greenhouse gases, or
7reductions in air and water pollution or energy consumption. In
8furtherance of this purpose, the authority may approve a project
9for financial assistance in the form of the sales and use tax
10exclusion established in Section 6010.8 of the Revenue and
12(b) For purposes of this section, the following terms have the
14(1) “Project” means tangible personal property if at least 50
15percent of its use is either to process recycled feedstock that is
16intended to be reused in the production of another product or using
17recycled feedstock in the production of another product or soil
18amendment, or tangible personal property that is used in the state
19for the design, manufacture, production, or assembly of advanced
20manufacturing, advanced transportation technologies, or alternative
21source products, components, or systems, as defined in Section
2226003. “Project” does not include tangible personal property that
23processes or uses recycled feedstock in a manner that would
24constitute disposal as defined in subdivision (b) of Section 40192.
25(2) “Recycled feedstock” means materials that would otherwise
26be destined for disposal, having completed their intended end use
27and product lifecycle.
28(3) “Soil amendments”
may include “compost,” as defined in
29Section 14525 of the Food and Agricultural Code, “fertilizing
30material,” as defined in Section 14533 of the Food and Agricultural
31Code, “gypsum” or “phosphatic sulfate gypsum,” as those terms
32are defined in Section 14537 of the Food and Agricultural Code,
33or a substance distributed for the purpose of promoting plant
34growth or improving the quality of crops by conditioning soils
35through physical means.
36(c) The authority shall publish notice of the availability of
37project applications and deadlines for submission of project
38applications to the authority.
39(d) The authority shall evaluate project applications based upon
40all of the following criteria:
P4 1(1) The extent to which the
project develops manufacturing
2facilities, or purchases equipment for manufacturing facilities,
3located in California.
4(2) The extent to which the anticipated benefit to the state from
5the project equals or exceeds the projected benefit to the
6participating party from the sales and use tax exclusion.
7(3) The extent to which the project will create new, permanent
8jobs in California.
9(4) To the extent feasible, the extent to which the project, or the
10product produced by the project, results in a reduction of
11greenhouse gases, a reduction in air or water pollution, an increase
12in energy efficiency, or a reduction in energy consumption, beyond
13what is required by federal or state law or regulation.
14(5) The extent of unemployment in the area in which the project
15is proposed to be located.
16(6) Any other factors the authority deems appropriate in
17accordance with this section.
18(e) At a duly noticed public hearing, the authority shall approve,
19by resolution, project applications for financial assistance.
20(f) Notwithstanding subdivision (j), and without regard to the
21actual date of any transaction between a participating party and
22the authority, any project approved by the authority by resolution
23for the sales and use tax exclusion pursuant to Section 6010.8 of
24the Revenue and Taxation Code before March 24, 2010, shall not
25be subject to this section.
26(g) The Legislative Analyst’s Office shall report to the Joint
27Legislative Budget Committee on the effectiveness of this program,
28on or before January 1, 2019, by evaluating factors, including, but
29not limited to, the following:
30(1) The number of jobs created by the program in California.
31(2) The number of businesses that have remained in California
32or relocated to California as a result of this program.
33(3) The amount of state and local revenue and economic activity
34generated by the program.
35(4) The types of advanced manufacturing, as defined in
36paragraph (1) of subdivision (a) of Section 26003, utilized.
37(5) The amount of reduction in greenhouse gases, air pollution,
38water pollution, or energy consumption.
39(h) (1) The exclusions granted pursuant to Section 6010.8 of
40the Revenue and Taxation Code for projects approved by the
P5 1authority pursuant to this section shall not exceed
begin delete twoend delete hundred
begin delete ($200,000,000)end delete for each calendar
4(2) If less than
begin delete twoend delete hundred million dollars begin delete ($200,000,000)end delete
5 is excluded pursuant to Section 6010.8 of the
6Revenue and Taxation Code in a calendar year, the unallocated
7portion of that
begin delete twoend delete hundred million dollars begin delete ($200,000,000)end delete
8 may be granted the following calendar year, in
9excess of the following year’s
begin delete two-hundred-million-dollar
11 maximum. The unallocated amount for a particular calendar year
12shall not roll over more than one calendar year.
13(i) (1) The authority shall study the efficacy and cost benefit
14of the sales and use tax exemption as it relates to advanced
15manufacturing projects. The study shall include the number of jobs
16created, the costs of each job, and the annual salary of each job.
17The study shall also consider a dynamic analysis of the economic
18output to the state that would occur without the sales and use tax
19exemption. Before January 1, 2017, the authority shall submit to
20the Legislature, consistent with Section 9795 of the Government
21Code, the result of the study.
22(2) Before January 1, 2015, the authority shall, consistent with
23Section 9795 of the Government Code, submit to the Legislature
24an interim report on the efficacy of the program conducted pursuant
25to this section. The study shall include recommendations on
26program changes that would increase the program’s efficacy in
27creating permanent and temporary jobs, and whether eligibility
28for the program should be extended or narrowed to other
29manufacturing types. The authority may work with the Legislative
30Analyst’s Office in preparing the report and its recommendations.
31(j) This section shall remain in effect only until January 1, 2021,
32and as of that date is repealed, unless a later enacted statute, that
33becomes operative on or before January 1, 2021, deletes or extends
34that date. The sale or purchase of tangible personal property of a
35project approved before January 1, 2021, shall continue to be
36excluded from sales and use taxes pursuant to Section 6010.8 of
37the Revenue and Taxation Code for the period of time set forth in
38the authority’s resolution approving the project pursuant to this
This act provides for a tax levy within the meaning of
2Article IV of the Constitution and shall go into immediate effect.