BILL NUMBER: AB 1851 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Members Gray and Ting
FEBRUARY 10, 2016
An act to amend Section 44274 of 44258.4
of, and to add Chapter 8.1 (commencing with Section 44257.1)
and Chapter 8.8 (commencing with Section 44269) to Part 5 of
Division 26 of, the Health and Safety Code, to amend
Sections 6011 and 6012 of the Revenue and Taxation Code, and to amend
Section 5205.5 of the Vehicle Code, relating to vehicular air
pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 1851, as amended, Gray. Air Quality Improvement
Program. Vehicular air pollution: reduction
incentives.
(1) Existing law establishes the Air Quality Improvement Program
that is administered by the State Air Resources Board for the
purposes of funding projects related to, among other things,
reduction of criteria air pollutants and improvement of air quality.
Pursuant to the Air Quality Improvement Program, the state board has
established the Clean Vehicle Rebate Project to promote the
production and use of zero-emission vehicles and the Hybrid and
Zero-Emission Truck and Bus Voucher Incentive Project to provide
vouchers to help California fleets to purchase hybrid and
zero-emission trucks and buses.
The Charge Ahead California Initiative, administered by the state
board, includes goals of, among other things, placing in service at
least 1,000,000 zero-emission and near-zero-emission vehicles by
January 1, 2023, and increasing access for disadvantaged, low-income,
and moderate-income communities and consumers to zero-emission and
near-zero-emission vehicles.
The California Global Warming Solutions Act of 2006 establishes
the state board as the state agency responsible for monitoring and
regulating sources emitting greenhouse gases. The act authorizes the
state board to include the use of market-based compliance mechanisms.
Existing law requires all moneys, except for fines and penalties,
collected by the state board from a market-based compliance mechanism
to be deposited in the Greenhouse Gas Reduction Fund and to be
available upon appropriation by the Legislature.
This bill, as part of the Clean Vehicle Rebate Project, would
require the state board to provide specified rebate amounts for
battery electric vehicles, fuel-cell vehicles, and plug-in hybrid
electric vehicles; to limit rebates to vehicles with a manufacturer's
suggested retail price of $60,000 or less; and to implement a
process to allow eligible applicants to obtain prompt preapproval
from the state board prior to purchasing an eligible vehicle, as
specified. The bill would authorize moneys from the Greenhouse Gas
Reduction Fund to be available, upon appropriation, for allocation
under those provisions and would authorize moneys available for
allocation to disadvantaged communities to be available, upon
appropriation, for specified allocations.
This bill also would require the state board to issue specified
rebates for the installation of an electric vehicle charging station
to a property owner or lessee, as specified. The bill would authorize
moneys from the Greenhouse Gas Reduction Fund to be available, upon
appropriation, for allocation for those rebates.
(2) Existing sales and use tax laws impose taxes on retailers
measured by gross receipts from the sale of tangible personal
property sold at retail in this state or on the storage, use, or
other consumption in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state, measured by sales price. The Sales and Use Tax Law
defines the terms "gross receipts" and "sales price."
This bill would exclude from the terms "gross receipts" and "sales
price" for these purposes the value of a motor vehicle traded in for
a qualified motor vehicle, as defined, if the value of the trade-in
motor vehicle is separately stated on the motor vehicle invoice or
bill of sale or similar document provided by the purchaser. The bill
would authorize moneys from the Greenhouse Gas Reduction Fund to be
available, upon appropriation, for allocation to reimburse counties
and cities for any revenue losses caused by those sales and use tax
exemptions.
(3) Existing federal law, until September 30, 2017, authorizes a
state to allow specified labeled vehicles to use lanes designated for
high-occupancy vehicles (HOVs). Existing law authorizes the
Department of Transportation to designate certain lanes for the
exclusive use of HOVs. Under existing law, until January 1, 2019,
until federal authorization expires, or until the Secretary of State
receives a specified notice, those lanes may be used by certain
vehicles not carrying the requisite number of passengers otherwise
required for the use of an HOV lane if the vehicle displays a valid
identifier issued by the Department of Motor Vehicles (DMV). Existing
law authorizes the DMV to issue no more than 85,000 of those
identifiers.
This bill would no longer limit the amount of identifiers issued
by the DMV.
Existing law establishes the Air Quality Improvement Program that
is administered by the State Air Resources Board for the purposes of
funding projects related to, among other things, reduction of
criteria air pollutants and improvement of air quality. Existing law
requires, until January 1, 2024, that a portion of the registration
fees for motor vehicles and vessels be deposited into the Air Quality
Improvement Fund and, upon appropriation, be expended for the
implementation of the program.
This bill would make technical, nonsubstantive changes to those
provisions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all
of the following:
(a) California is at the forefront of battling climate change, and
a main pillar of the state's climate strategy is reducing greenhouse
gas emissions to 1990 levels.
(b) To help achieve this greenhouse gas emissions goal, the State
Air Resources Board has required large vehicle manufacturers to
produce a certain amount of zero-emission vehicles as a percentage of
the overall number of vehicles the manufacturer makes for sale in
the state. The present mandate is 15.4 percent of new vehicles
delivered for sale by 2025.
(c) To reinforce this mandate, Governor Jerry Brown issued
Executive Order B-16-2012, which set a long-term target of 1,500,000
zero-emission vehicles on the road by 2025, with the hope and
expectation that the market for these vehicles will become mainstream
and self-sustaining for individuals, businesses, and public fleets.
(d) The widespread adoption and purchase of zero-emission vehicles
can help the environment and further the state's goals by mitigating
emissions and easing air pollution.
(e) To be effective in cutting emissions and cleaning up air
pollution, zero-emission and partial-zero-emission vehicles must
attract consumers who would otherwise choose a traditional
gasoline-fueled car.
(f) The current market for zero-emission vehicles has excessive
barriers, including the high relative purchase price associated with
zero-emission vehicles, limited range capability, inadequate charging
infrastructure, resale value, length of commute, and existing low
gas prices.
(g) In 2015, California's new car dealers sold over 2,000,000 new
vehicles with a combined 3.1 percent of those sales comprising
zero-emission vehicles and partial-zero-emission vehicles. That
represents a drop in market share for these vehicles, which was 3.2
percent in 2014.
(h) Using last year's 2,000,000 new vehicle sales as an estimate
of 2025 vehicle sales by covered manufacturers, the 15.4 percent
mandate by the State Air Resources Board would require 308,000
zero-emission vehicles and partial-zero-emission vehicles be
delivered for sale in the state that year. If the current 41.5
percent of new vehicle sales will continue to be made up of sport
utility vehicles, pickups, and vans, over 25 percent of the remaining
1,201,000 passenger vehicles delivered for sale just nine years from
now must be electric or plug-in electric vehicles.
(i) California has long focused on increasing disadvantaged
communities' access to environmentally-friendly technologies and
green transportation options to benefit the health of residents and
to enhance air quality.
(j) Compared to gasoline-fueled vehicles, alternative-fueled
vehicles reduce the country's dependence on foreign oil and
substantially lower consumers' fuel costs.
(k) Automakers and new car dealers face numerous inherent market
challenges when introducing and retailing the alternative-fueled
vehicles required by the State Air Resources Board's vehicle
mandates, including complex incentives, uncertain policy support,
purchase price disparity, lengthy sales transactions, low gasoline
prices, poor after-sale electric vehicle infrastructure, and
sophisticated, constantly-changing technology.
(l) Incentives, such as rebates, tax credits, and high occupancy
vehicle lane access for zero- and partial-emission vehicles, are
crucial for continuing consumer interest in these vehicles, but
greater investments are needed to significantly affect consumer
buying behavior and the overall alternative-fueled vehicle
marketplace, especially when it comes to economically disadvantaged
communities.
(m) Increased incentives have been deployed with great success in
other countries and have resulted in a large-scale consumer migration
from traditional gas-fueled vehicles to cleaner modes of
transportation.
(n) Accordingly, it is the intent of the Legislature in enacting
this act to provide more realistic incentives that will move customer
demand of zero-emission vehicles and achieve the adoption of
alternative-fueled vehicles to meet the state's greenhouse gas
emissions goals.
SEC. 2. Chapter 8.1 (commencing with Section
44257.1) is added to Part 5 of Division 26 of the Health
and Safety Code , to read:
CHAPTER 8.1. ZERO-EMISSION VEHICLE INCENTIVES
44257.1. For purposes of this chapter, the following terms have
the following meanings:
(a) "Battery electric vehicle" means a vehicle that meets the
state's super ultra-low emission vehicle standard for exhaust
emissions and the federal inherently low-emission vehicle evaporative
emission standard, as defined in Part 88 (commencing with Section
88.101-94) of Title 40 of the Code of Federal Regulations, as that
part read on January 1, 2016, and is powered entirely by an electric
motor drawing current from rechargeable storage batteries.
(b) "Clean Vehicle Rebate Project" has the same meaning as
established pursuant to Section 44274.
(c) "Disadvantaged community" means a community identified
pursuant to Section 39711.
(d) "Fuel-cell vehicle" means a vehicle that meets the state's
super ultra-low emission vehicle standard for exhaust emissions and
the federal inherently low-emission vehicle evaporative emission
standard, as defined in Part 88 (commencing with Section 88.101-94)
of Title 40 of the Code of Federal Regulations, as that part read on
January 1, 2016, and is powered by an electric motor drawing current
from compressed hydrogen into a fuel cell.
(e) "New motor vehicle dealer" has the same meaning as in Section
426 of the Vehicle Code.
(f) "Plug-in hybrid electric vehicle" means a vehicle that meets
the state's enhanced advanced technology partial zero-emission
vehicle standard or transitional zero-emission vehicle standard.
44257.3. (a) Beginning January 1, 2017, as part of the Clean
Vehicle Rebate Project, the state board shall provide the following
incentive amounts:
(1) For a vehicle qualified as a plug-in hybrid electric vehicle,
an amount equal to 10 percent of the manufacturer's suggested retail
price.
(2) For a vehicle qualified as a battery electric vehicle, an
amount equal to 15 percent of the manufacturer's suggested retail
price.
(3) For a vehicle qualified as a fuel-cell vehicle, an amount
equal to 25 percent of the manufacturer's suggested retail price.
(b) Notwithstanding subdivision (a), beginning January 1, 2017, as
part of the Clean Vehicle Rebate Project, the state board shall
provide for residents of a disadvantaged community the following
incentive amounts:
(1) For a vehicle qualified as a plug-in hybrid electric vehicle,
an amount equal to 40 percent of the manufacturer's suggested retail
price.
(2) For a vehicle qualified as a battery electric vehicle, an
amount equal to 45 percent of the manufacturer's suggested retail
price.
(3) For a vehicle qualified as a fuel-cell vehicle, an amount
equal to 55 percent of the manufacturer's suggested retail price.
(c) (1) Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, shall be
available, upon appropriation by the Legislature, for allocation
pursuant to subdivision (a).
(2) Moneys available for allocation to disadvantaged communities
shall be available, upon appropriation by the Legislature, for
allocation pursuant to subdivision (b).
44257.5. In addition to the current criteria and other
requirements for the Clean Vehicle Rebate Project, beginning January
1, 2017, the state board shall limit eligible vehicles to those
vehicles with a manufacturer's suggested retail price of sixty
thousand dollars ($60,000) or less.
44257.7. (a) (1) The state board shall implement a process to
allow eligible applicants under the Clean Vehicle Rebate Project to
obtain prompt preapproval from the state board prior to purchasing or
leasing a vehicle. The process shall provide the applicant a unique
identifiable number, which the applicant can present to a new motor
vehicle dealer, and shall enable the unique identifiable number to be
verified by a new motor vehicle dealer at the time of purchase or
lease.
(2) The state board shall implement a process to allow a new motor
vehicle dealer to be refunded any Clean Vehicle Rebate Project
incentive amount applied to the applicant's conditional sales
contract or other vehicle purchase or lease agreement in no fewer
than seven days.
(b) Upon the implementation of subdivision (a), a new motor
vehicle dealer may apply the Clean Vehicle Rebate Project incentive
amount to the applicant's conditional sales contract or other vehicle
purchase or lease agreement as a downpayment or amount due at lease
signing or delivery.
(c) The state board shall suspend the preapproval process
described in paragraph (1) of subdivision (a) if inadequate funding
is available to award incentives under the Clean Vehicle Rebate
Project. If the state board suspends the preapproval process, it
shall provide dealers and consumers no less than 30 days' advance
notice.
44257.9. The state board shall adopt regulations implementing
this chapter.
SEC. 3. Section 44258.4 of the Health
and Safety Code is amended to read:
44258.4. (a) Any moneys utilized by this act
pursuant to this chapter from the Greenhouse Gas Reduction
Fund, established created pursuant to
Section 16428.8 of the Government Code, shall be consistent with the
appropriations processes and criteria established by the Greenhouse
Gas Reduction Fund Investment Plan and Communities Revitalization Act
(Chapter 4.1 (commencing with Section 39710) of Part 2).
(b) The Charge Ahead California Initiative is hereby established
and shall be administered by the state board. The goals of this
initiative are to place in service at least 1,000,000 zero-emission
and near-zero-emission vehicles by January 1, 2023, to establish a
self-sustaining California market for zero-emission and
near-zero-emission vehicles in which zero-emission and
near-zero-emission vehicles are a viable mainstream option for
individual vehicle purchasers, businesses, and public fleets, to
increase access for disadvantaged, low-income, and moderate-income
communities and consumers to zero-emission and near-zero-emission
vehicles, and to increase the placement of those vehicles in those
communities and with those consumers to enhance the air quality,
lower greenhouse gases, and promote overall benefits for those
communities and consumers.
(c) The state board, in consultation with the State Energy
Resources Conservation and Development Commission, districts, and the
public, shall do all of the following:
(1) (A) Include, commencing with the funding plan for the
2016-17 fiscal year of the Air Quality Improvement Program
funding plan for the 2016-17 fiscal year,
(Article 3 (commencing with Section 44274) of Chapter
8.9), a funding plan that includes the immediate fiscal year
and a forecast of estimated funding needs for the subsequent two
fiscal years commensurate with meeting the goals of this chapter.
Funding needs may be described as a range that identifies the
projected high and low funding levels needed for the two-year
forecast period to contribute to technology advancement, market
readiness, and consumer acceptance of zero- and near-zero-emission
vehicle technologies. The funding plan shall include a market and
technology assessment for each funded zero- and near-zero-emission
vehicle technology to inform the appropriate funding level, incentive
type, and incentive amount. The forecast shall include an assessment
of when a self-sustaining market is expected and how existing
incentives may be modified to recognize expected changes in future
market conditions.
(B) Projects included in the forecast may include, but are not
limited to, any of the following:
(i) The Clean Vehicle Rebate Project, established pursuant to
Section 44274.
(ii) Light-duty zero-emission and near-zero-emission vehicle
deployment projects eligible under the Alternative and Renewable Fuel
and Vehicle Technology Program, established pursuant to Article 2
(commencing with Section 44272) of Chapter 8.9.
(iii) Programs adopted pursuant to paragraph (4).
(2) Update the plan required pursuant to paragraph (1) at least
every three years through January 1, 2023.
(3) No later than June 30, 2015, adopt revisions to the criteria
and other requirements for the Clean Vehicle Rebate Project,
established pursuant to Section 44274, to ensure the following:
(A) Rebate levels can be phased down in increments based on
cumulative sales levels as determined by the state board.
(B) Eligibility is limited based on income.
(C) Consideration of the conversion to prequalification and
point-of-sale rebates or other methods to increase participation
rates.
(4)
(3) (A) Establish programs that further increase access
to and direct benefits for disadvantaged, low-income, and
moderate-income communities and consumers from electric
transportation, including, but not limited to, any of the following:
(i) Financing mechanisms, including, but not limited to, a loan or
loan-loss reserve credit enhancement program to increase consumer
access to zero-emission and near-zero-emission vehicle financing and
leasing options that can help lower expenditures on transportation
and prequalification or point-of-sale rebates or other methods to
increase participation rates among low- and moderate-income
consumers.
(ii) Car sharing programs that serve disadvantaged communities and
utilize zero-emission and near-zero-emission vehicles.
(iii) Deployment of charging infrastructure in multiunit dwellings
in disadvantaged communities to remove barriers to zero-emission and
near-zero-emission vehicle adoption by those who do not live in
detached homes. This clause does not preclude the Public Utilities
Commission from acting within the scope of its jurisdiction.
(iv) Additional incentives for zero-emission, near-zero-emission,
or high-efficiency replacement vehicles or a mobility option
available to participants in the enhanced fleet modernization
program, established pursuant to Article 11 (commencing with Section
44125) of Chapter 5.
(B) Programs implemented pursuant to this paragraph shall provide
adequate outreach to disadvantaged, low-income, and moderate-income
communities and consumers, including partnering with community-based
organizations.
SEC. 4. Chapter 8.8 (commencing with Section
44269) is added to Part 5 of Division 26 of the Health and
Safety Code , to read:
CHAPTER 8.8. ELECTRIC VEHICLE CHARGING STATION REBATES
44269. (a) The state board shall issue a rebate for the
installation of an electric vehicle charging station to a property
owner or lessee in the following amounts:
(1) Two thousand dollars ($2,000) for the first year of
installation.
(2) One thousand five hundred dollars ($1,500) following the first
year of installation.
(3) One thousand dollars ($1,000) following the second year of
installation.
(b) The property owner or lessee shall first place the electric
vehicle charging station in service during the calendar year for
which the rebate is claimed.
(c) The property owner or lessee shall maintain the electric
vehicle charging station for a minimum period of 60 months. If the
property owner or lessee does not maintain the electric vehicle
charging station for a minimum period of 60 months, the state board
shall seek reimbursement for the entire amount of the rebates
previously issued pursuant to subdivision (a) from the property owner
or lessee who had received those rebates.
(d) The property owner or lessee may not claim a rebate pursuant
to subdivision (a) for the installation of an electric vehicle
charging station if an existing electric vehicle charging station has
been removed from the property within the preceding 12 months.
(e) (1) The property owner or lessee may receive rebates for the
installation of up to two electric vehicle charging stations for use
on a residential property.
(2) The property owner or lessee may receive rebates for the
installation of up to 10 electric vehicle charging stations for use
on a commercial or multifamily property.
(f) The state board shall adopt regulations implementing this
chapter.
44269.5. Moneys from the Greenhouse Gas Reduction Fund, created
pursuant to Section 16428.8 of the Government Code, shall be
available, upon appropriation by the Legislature, for allocation
pursuant to this chapter.
SEC. 5. Section 6011 of the Revenue and
Taxation Code is amended to read:
6011. (a) "Sales price" means the total amount for which tangible
personal property is sold or leased or rented, as the case may be,
valued in money, whether paid in money or otherwise, without any
deduction on account of any of the following:
(1) The cost of the property sold.
(2) The cost of materials used, labor or service cost, interest
charged, losses, or any other expenses.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(b) The total amount for which the property is sold or leased or
rented includes all of the following:
(1) Any services that are a part of the sale.
(2) Any amount for which credit is given to the purchaser by the
seller.
(3) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(c) "Sales price" does not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) The amount charged for property returned by customers when
that entire amount is refunded either in cash or credit, but this
exclusion shall not apply in any instance when the customer, in order
to obtain the refund, is required to purchase other property at a
price greater than the amount charged for the property that is
returned. For the purpose of this section, refund or credit of the
entire amount shall be deemed to be given when the purchase price
less rehandling and restocking costs are refunded or credited to the
customer. The amount withheld for rehandling and restocking costs may
be a percentage of the sales price determined by the average cost of
rehandling and restocking returned merchandise during the previous
accounting cycle.
(3) The amount charged for labor or services rendered in
installing or applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 or 4091 of the Internal
Revenue Code for which the purchaser certifies that he or she is
entitled to either a direct refund or credit against his or her
income tax for the federal excise tax paid or for which the purchaser
issues a certificate pursuant to Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property,
measured by a stated percentage of sales price or gross receipts,
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the purchase of the property is made.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid the State of California that has
been added to or is measured by a stated percentage of the sales or
purchase price of a motor vehicle, mobilehome, or commercial coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
(13) (A) The value of a motor vehicle traded in for a qualified
motor vehicle if the value of the trade-in motor vehicle is
separately stated on the qualified motor vehicle invoice or bill of
sale or similar document provided to the purchaser.
(B) For purposes of this paragraph, "qualified motor vehicle"
means a motor vehicle that meets either of the following:
(i) California's super ultra-low emission vehicle standard for
exhaust emissions and the federal inherently low-emission vehicle
evaporative emission standard, as defined in Part 88 (commencing with
Section 88.101-94) of Title 40 of the Code of Federal Regulations as
that part read on January 1, 2016.
(ii) California's enhanced advanced technology partial
zero-emission vehicle standard or transitional zero-emission vehicle
standard.
(C) Consistent with Section 2230, moneys from the Greenhouse Gas
Reduction Fund, created pursuant to Section 16428.8 of the Government
Code, shall be available, upon appropriation by the Legislature, for
allocation to reimburse counties and cities for any revenue losses
resulting from the application of this paragraph.
SEC. 6. Section 6012 of the Revenue and
Taxation Code is amended to read:
6012. (a) "Gross receipts" mean the total amount of the sale or
lease or rental price, as the case may be, of the retail sales of
retailers, valued in money, whether received in money or otherwise,
without any deduction on account of any of the following:
(1) The
cost of the property sold. However, in accordance with any rules and
regulations as the board may prescribe, a deduction may be taken if
the retailer has purchased property for some other purpose than
resale, has reimbursed his or her vendor for tax which the vendor is
required to pay to the state or has paid the use tax with respect to
the property, and has resold the property prior to making any use of
the property other than retention, demonstration, or display while
holding it for sale in the regular course of business. If that
deduction is taken by the retailer, no refund or credit will be
allowed to his or her vendor with respect to the sale of the
property.
(2) The cost of the materials used, labor or service cost,
interest paid, losses, or any other expense.
(3) The cost of transportation of the property, except as excluded
by other provisions of this section.
(4) The amount of any tax imposed by the United States upon
producers and importers of gasoline and the amount of any tax imposed
pursuant to Part 2 (commencing with Section 7301) of this division.
(b) The total amount of the sale or lease or rental price includes
all of the following:
(1) Any services that are a part of the sale.
(2) All receipts, cash, credits and property of any kind.
(3) Any amount for which credit is allowed by the seller to the
purchaser.
(c) "Gross receipts" do not include any of the following:
(1) Cash discounts allowed and taken on sales.
(2) Sale price of property returned by customers when that entire
amount is refunded either in cash or credit, but this exclusion shall
not apply in any instance when the customer, in order to obtain the
refund, is required to purchase other property at a price greater
than the amount charged for the property that is returned. For the
purpose of this section, refund or credit of the entire amount shall
be deemed to be given when the purchase price less rehandling and
restocking costs are refunded or credited to the customer. The amount
withheld for rehandling and restocking costs may be a percentage of
the sales price determined by the average cost of rehandling and
restocking returned merchandise during the previous accounting cycle.
(3) The price received for labor or services used in installing or
applying the property sold.
(4) (A) The amount of any tax (not including, however, any
manufacturers' or importers' excise tax, except as provided in
subparagraph (B)) imposed by the United States upon or with respect
to retail sales whether imposed upon the retailer or the consumer.
(B) The amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 or 4091 of the Internal
Revenue Code for which the purchaser certifies that he or she is
entitled to either a direct refund or credit against his or her
income tax for the federal excise tax paid or for which the purchaser
issues a certificate pursuant to Section 6245.5.
(5) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California upon
or with respect to retail sales of tangible personal property
measured by a stated percentage of sales price or gross receipts
whether imposed upon the retailer or the consumer.
(6) The amount of any tax imposed by any city, county, city and
county, or rapid transit district within the State of California with
respect to the storage, use or other consumption in that city,
county, city and county, or rapid transit district of tangible
personal property measured by a stated percentage of sales price or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(7) Separately stated charges for transportation from the retailer'
s place of business or other point from which shipment is made
directly to the purchaser, but the exclusion shall not exceed a
reasonable charge for transportation by facilities of the retailer or
the cost to the retailer of transportation by other than facilities
of the retailer. However, if the transportation is by facilities of
the retailer, or the property is sold for a delivered price, this
exclusion shall be applicable solely with respect to transportation
which occurs after the sale of the property is made to the purchaser.
(8) Charges for transporting landfill from an excavation site to a
site specified by the purchaser, either if the charge is separately
stated and does not exceed a reasonable charge or if the entire
consideration consists of payment for transportation.
(9) The amount of any motor vehicle, mobilehome, or commercial
coach fee or tax imposed by and paid to the State of California that
has been added to or is measured by a stated percentage of the sales
or purchase price of a motor vehicle, mobilehome, or commercial
coach.
(10) (A) The amount charged for intangible personal property
transferred with tangible personal property in any technology
transfer agreement, if the technology transfer agreement separately
states a reasonable price for the tangible personal property.
(B) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the price at which the tangible personal
property was sold, leased, or offered to third parties shall be used
to establish the retail fair market value of the tangible personal
property subject to tax. The remaining amount charged under the
technology transfer agreement is for the intangible personal property
transferred.
(C) If the technology transfer agreement does not separately state
a price for the tangible personal property, and the tangible
personal property or like tangible personal property has not been
previously sold or leased, or offered for sale or lease, to third
parties at a separate price, the retail fair market value shall be
equal to 200 percent of the cost of materials and labor used to
produce the tangible personal property subject to tax. The remaining
amount charged under the technology transfer agreement is for the
intangible personal property transferred.
(D) For purposes of this paragraph, "technology transfer agreement"
means any agreement under which a person who holds a patent or
copyright interest assigns or licenses to another person the right to
make and sell a product or to use a process that is subject to the
patent or copyright interest.
(11) The amount of any tax imposed upon diesel fuel pursuant to
Part 31 (commencing with Section 60001).
(12) (A) The amount of tax imposed by any Indian tribe within the
State of California with respect to a retail sale of tangible
personal property measured by a stated percentage of the sales or
purchase price, whether the tax is imposed upon the retailer or the
consumer.
(B) The exclusion authorized by subparagraph (A) shall only apply
to those retailers who are in substantial compliance with this part.
For purposes of the sales tax, if the retailers establish to the
satisfaction of the board that the sales tax has been added to the
total amount of the sale price and has not been absorbed by them, the
total amount of the sale price shall be deemed to be the amount
received exclusive of the tax imposed. Section 1656.1 of the Civil
Code shall apply in determining whether or not the retailers have
absorbed the sales tax.
(13) (A) The value of a motor vehicle traded in for a qualified
motor vehicle if the value of the trade-in motor vehicle is
separately stated on the qualified motor vehicle invoice or bill of
sale or similar document provided to the purchaser.
(B) For purposes of this paragraph, "qualified motor vehicle"
means a motor vehicle that meets either of the following:
(i) California's super ultra-low emission vehicle standard for
exhaust emissions and the federal inherently low-emission vehicle
evaporative emission standard, as defined in Part 88 (commencing with
Section 88.101-94) of Title 40 of the Code of Federal Regulations as
that part read on January 1, 2016.
(ii) California's enhanced advanced technology partial
zero-emission vehicle standard or transitional zero-emission vehicle
standard.
(C) Consistent with Section 2230, moneys from the Greenhouse Gas
Reduction Fund, created pursuant to Section 16428.8 of the Government
Code, shall be available, upon appropriation by the Legislature, for
allocation to reimburse counties and cities for any revenue losses
resulting from the application of this paragraph.
SEC. 7. Section 5205.5 of the Vehicle
Code is amended to read:
5205.5. (a) For the purposes of implementing Section
21655.9, the department shall make available for issuance, for a fee
determined by the department to be sufficient to reimburse the
department for the actual costs incurred pursuant to this section,
distinctive decals, labels, and other identifiers that clearly
distinguish the following vehicles from other vehicles:
(1) A vehicle that meets California's super ultra-low emission
vehicle (SULEV) standard for exhaust emissions and the federal
inherently low-emission vehicle (ILEV) evaporative emission standard,
as defined in Part 88 (commencing with Section 88.101-94) of Title
40 of the Code of Federal Regulations.
(2) A vehicle that was produced during the 2004 model year or
earlier and meets California's ultra-low emission vehicle (ULEV)
standard for exhaust emissions and the federal ILEV standard.
(3) A vehicle that meets California's enhanced advanced technology
partial zero-emission vehicle (enhanced AT PZEV) standard or
transitional zero-emission vehicle (TZEV) standard.
(b) The department shall include a summary of the provisions of
this section on each motor vehicle registration renewal notice, or on
a separate insert, if space is available and the summary can be
included without incurring additional printing or postage costs.
(c) The Department of Transportation shall remove individual HOV
lanes, or portions of those lanes, during periods of peak congestion
from the access provisions provided in subdivision (a), following a
finding by the Department of Transportation as follows:
(1) The lane, or portion thereof, exceeds a level of service C, as
discussed in subdivision (b) of Section 65089 of the Government
Code.
(2) The operation or projected operation of the vehicles described
in subdivision (a) in these lanes, or portions thereof, will
significantly increase congestion.
(3) The finding shall also demonstrate the infeasibility of
alleviating the congestion by other means, including, but not limited
to, reducing the use of the lane by noneligible vehicles or further
increasing vehicle occupancy.
(d) The State Air Resources Board shall publish and maintain a
listing of all vehicles eligible for participation in the programs
described in this section. The board shall provide that listing to
the department.
(e) (1) For the purposes of subdivision (a), the
Department of the California Highway Patrol and the department, in
consultation with the Department of Transportation, shall design and
specify the placement of the decal, label, or other identifier on the
vehicle. Each decal, label, or other identifier issued for a vehicle
shall display a unique number, which shall be printed on,
on or affixed to, to
the vehicle registration.
(2) Decals, labels, or other identifiers designed pursuant to this
subdivision for a vehicle described in paragraph (3) of subdivision
(a) shall be distinguishable from the decals, labels, or other
identifiers that are designed for vehicles described in paragraphs
(1) and (2) of subdivision (a).
(f) (1) Except as provided in paragraph (2), for purposes of
paragraph (3) of subdivision (a), the department shall issue no more
than 85,000 distinctive decals, labels, or other identifiers that
clearly distinguish a vehicle specified in paragraph (3) of
subdivision (a).
(2) The department may issue a decal, label, or other identifier
for a vehicle that satisfies all of the following conditions:
(A) The vehicle is of a type identified in paragraph (3) of
subdivision (a).
(B) The owner of the vehicle is the owner of a vehicle for which a
decal, label, or other identifier described in paragraph (1) was
previously issued and that vehicle for which the decal, label, or
other identifier was previously issued is determined by the
department, on the basis of satisfactory proof submitted by the owner
to the department, to be a nonrepairable vehicle or a total loss
salvage vehicle.
(C) The owner of the vehicle applied for a decal, label, or other
identifier pursuant to this paragraph within six months of the date
on which the vehicle for which a decal, label, or other identifier
was previously issued is declared to be a nonrepairable vehicle or a
total loss salvage vehicle.
(f) Reserved]
(g) If the Metropolitan Transportation Commission, serving as the
Bay Area Toll Authority, grants toll-free and reduced-rate passage on
toll bridges under its jurisdiction to a vehicle pursuant to Section
30102.5 of the Streets and Highways Code, it shall also grant the
same toll-free and reduced-rate passage to a vehicle displaying an
identifier issued by the department pursuant to paragraph (1) or (2)
of subdivision (a).
(h) (1) Notwithstanding Section 21655.9, and except as provided in
paragraph (2), a vehicle described in subdivision (a) that displays
a decal, label, or identifier issued pursuant to this section shall
be granted a toll-free or reduced-rate passage in high-occupancy toll
lanes as described in Section 149.7 of the Streets and Highways Code
unless prohibited by federal law.
(2) (A) Paragraph (1) does not apply to the imposition of a toll
imposed for passage on a toll road or toll highway,
highway that is not a high-occupancy toll lane
as described in Section 149.7 of the Streets and Highways Code.
(B) On or before March 1, 2014, paragraph (1) does not apply to
the imposition of a toll imposed for passage in lanes designated for
tolls pursuant to the federally supported value pricing and transit
development demonstration program operated pursuant to Section 149.9
of the Streets and Highways Code for State Highway Route 10 or 110.
(C) Paragraph (1) does not apply to the imposition of a toll
charged for crossing a state-owned bridge.
(i) If the Director of Transportation determines that federal law
does not authorize the state to allow vehicles that are identified by
distinctive decals, labels, or other identifiers on vehicles
described in subdivision (a) to use highway lanes or highway access
ramps for high-occupancy vehicles regardless of vehicle occupancy,
the Director of Transportation shall submit a notice of that
determination to the Secretary of State.
(j) This section shall become inoperative on January 1, 2019, or
the date the federal authorization pursuant to Section 166 of Title
23 of the United States Code expires, or the date the Secretary of
State receives the notice described in subdivision (i), whichever
occurs first, and, as of January 1, 2019, is repealed, unless a later
enacted statute, that becomes operative on or before January 1,
2019, deletes or extends the dates on which it becomes inoperative
and is repealed.
SECTION 1. Section 44274 of the Health and
Safety Code is amended to read:
44274. (a) The Air Quality Improvement Program is hereby created.
The program shall be administered by the state board, in
consultation with the districts. The state board shall develop
guidelines to implement the program. Prior to the adoption of the
guidelines, the state board shall hold at least one public hearing.
In addition, the state board shall hold at least three public
workshops with at least one workshop in northern California, one in
the central valley, and one in southern California. The purpose of
the program shall be to fund, upon appropriation by the Legislature,
air quality improvement projects relating to fuel and vehicle
technologies. The primary purpose of the program shall be to fund
projects to reduce criteria air pollutants, improve air quality, and
provide funding for research to determine and improve the air quality
impacts of alternative transportation fuels and vehicles, vessels,
and equipment technologies.
(b) The state board shall provide preference in awarding funding
to those projects with higher benefit-cost scores that maximize the
purposes and goals of the Air Quality Improvement Program. The state
board also may give additional preference based on the following
criteria, as applicable, in funding awards to projects:
(1) Proposed or potential reduction of criteria or toxic air
pollutants.
(2) Contribution to regional air quality improvement.
(3) Ability to promote the use of clean alternative fuels and
vehicle technologies as determined by the state board, in
coordination with the commission.
(4) Ability to achieve climate change benefits in addition to
criteria pollutant or air toxic emissions reductions.
(5) Ability to support market transformation of California's
vehicle or equipment fleet to utilize low carbon or zero-emission
technologies.
(6) Ability to leverage private capital investments.
(c) The program shall be limited to competitive grants, revolving
loans, loan guarantees, loans, and other appropriate funding measures
that further the purposes of the program. Projects to be funded
shall include only the following:
(1) Onroad and off-road equipment projects that are cost
effective.
(2) Projects that provide mitigation for off-road gasoline exhaust
and evaporative emissions.
(3) Projects that provide research to determine the air quality
impacts of alternative fuels and projects that study the life-cycle
impacts of alternative fuels and conventional fuels, the emissions of
biofuel and advanced reformulated gasoline blends, and air pollution
improvements and control technologies for use with alternative fuels
and vehicles.
(4) Projects that augment the University of California's
agricultural experiment station and cooperative extension programs
for research to increase sustainable biofuels production and improve
the collection of biomass feedstock.
(5) Incentives for small off-road equipment replacement to
encourage consumers to replace internal combustion engine lawn and
garden equipment.
(6) Incentives for medium- and heavy-duty vehicles and equipment
mitigation, including all of the following:
(A) Lower emission schoolbus programs.
(B) Electric, hybrid, and plug-in hybrid onroad and off-road
medium- and heavy-duty equipment.
(C) Regional air quality improvement and attainment programs
implemented by the state or districts in the most impacted regions of
the state.
(7) Workforce training initiatives related to advanced energy
technology designed to reduce air pollution, including
state-of-the-art equipment and goods, and new processes and systems.
Workforce training initiatives funded shall be broad-based
partnerships that leverage other public and private job training
programs and resources. These partnerships may include, but are not
limited to, employers, labor unions, labor-management partnerships,
community organizations, workforce investment boards, postsecondary
education providers including community colleges, and economic
development agencies.
(8) Incentives to identify and reduce emissions from high-emitting
light-duty vehicles.
(d) (1) Beginning January 1, 2011, the state board shall submit to
the Legislature a biennial report to evaluate the implementation of
the Air Quality Improvement Program established pursuant to this
chapter.
(2) The report shall include all of the following:
(A) A list of projects funded by the Air Quality Improvement
Account.
(B) The expected benefits of the projects in promoting clean,
alternative fuels and vehicle technologies.
(C) The improvement in air quality and public health, greenhouse
gas emissions reductions, and the progress made toward achieving
these benefits.
(D) The impact of the projects in making progress toward the
attainment of state and federal air quality standards.
(E) Recommendations for future actions.
(3) The state board may include the information required to be
reported pursuant to paragraph (1) in an existing report to the
Legislature as the state board deems appropriate.