Bill Text: CA AB1111 | 2009-2010 | Regular Session | Amended
Bill Title: Energy: California Alternative Energy and Advanced
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1111 Detail]
Download: California-2009-AB1111-Amended.html
BILL NUMBER: AB 1111 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 13, 2009
AMENDED IN ASSEMBLY APRIL 22, 2009
INTRODUCED BY Assembly Member Blakeslee
FEBRUARY 27, 2009
An act to amend Section 26003 of, and to add Section
26029.2 26011.7 to, the Public Resources Code,
relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1111, as amended, Blakeslee. Energy: California Alternative
Energy and Advanced Transportation Financing Authority.
The California Alternative Energy and Advanced Transportation
Financing Authority Act established the California Alternative Energy
and Advanced Transportation Financing Authority. The authority is
authorized to do all things necessary and convenient to carry out the
purposes of the act. The authority is also required to establish a
renewable energy program to provide financial assistance, as defined,
to certain entities for projects to generate new and renewable
energy sources, develop clean and efficient distributed generation,
and demonstrate the economic feasibility of new technologies.
Existing law provides that the transfer of title of tangible personal
property constituting a project under the act to the authority by a
participating party or the lease or transfer of tangible personal
property constituting a project under the act by the authority to a
participating party pursuant to the act is not a "sale" or
"purchase" for the purposes of the Sales and Use Tax Law.
This bill would include as a project, machinery or equipment that
is utilized for the design, technology transfer, manufacture,
production, assembly, distribution, or service of an alternative
source component. The bill would authorize the authority to
recommend to the Board of Equalization that projects be exempt from
sales and use tax, which the bill would include as
"financial assistance" for the purposes of the act purchases,
sales, or lease arrangements that qualify for exclusion from the
Sales and Use Tax Law. The bill would require the authority to
consider specified criteria in approving a project for which the
purchase, sale, or lease of tangible personal property qualifies
for the sales and use tax exclusion . The bill would
require, when the sales and use tax exemptions granted by
the board exclusion for projects approved by the
authority exceed $100,000,000 annually, the authority to
provide a 20-day notice to the Legislature for additional
recommendation for exemption project approval .
Vote: majority. 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 is amended
to read:
26003. As used in this division, unless the context otherwise
requires:
(a) "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.
(b) "Cost" as applied to a project or portion thereof 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 therein, 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; the cost of the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011;
provisions for working capital; reserves for principal and interest
and for extensions, enlargements, additions, replacements,
renovations, and improvements; the cost of architectural,
engineering, financial, accounting, auditing and legal services,
plans, specifications, estimates, administrative expenses, and other
expenses necessary or incident to determining the feasibility of
constructing any project or incident to the construction,
acquisition, or financing of a project.
(c) (1) "Alternative sources" means the application of
cogeneration technology, as defined in Section 25134; the
conservation of energy; or the use of solar, biomass, wind,
geothermal, hydroelectricity under 30 megawatts, or any other source
of energy, the efficient use of which will reduce the use of fossil
and nuclear fuels, and is intended primarily to offset part or all of
the customer's own electrical requirements.
(2) "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.
(d) "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 reduction, and
transportation efficiency. Those technologies may include, but are
not limited to, any of the following:
(1) Intelligent vehicle highway systems.
(2) Advanced telecommunications for transportation.
(3) Command, control, and communications for public transit
vehicles and systems.
(4) Electric vehicles and ultralow-emission vehicles.
(5) High-speed rail and magnetic levitation passenger systems.
(6) Fuel cells.
(e) "Financial assistance" includes, but is not limited to,
either, or any combination, of the following:
(1) Loans, loan loss reserves, interest rate reductions, proceeds
of bonds issued by the authority, insurance, guarantees or other
credit enhancements or liquidity facilities, contributions of money,
property, labor, or other items of value, or any combination thereof,
as determined by, and approved by the resolution of, the authority.
(2) Purchases, sales, or lease arrangements approved by the State
Board of Equalization to qualify an advanced transportation or
alternative source component project for sales and use tax exemption
pursuant to Section 6010.8 of the Revenue and Taxation Code.
(2) Purchases, sales, or lease arrangements that qualify for
exclusion from sales and use tax pursuant to Section 6010.8 of the
Revenue and Taxation Code.
(3) Any other type of assistance the authority determines is
appropriate.
(f) "Participating party" means either of the following:
(1) A person or an entity or group of entities engaged in business
or operations in the state, whether organized for profit or not for
profit, that does either of the following:
(A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
(2) A public agency or nonprofit corporation that does either of
the following:
(A) Applies for financial assistance from the authority for the
purpose of implementing a project in a manner prescribed by the
authority.
(B) Participates in the purchase or sale of energy derived from an
alternative source pursuant to subdivision (g) of Section 26011.
(g) "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, 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, alternative source
components, or an arrangement for the purchase, including prepayment,
or sale of energy derived from an alternative source pursuant to
subdivision (g) of Section 26011.
(h) "Public agency" means a federal or state agency, department,
board, authority, state or community college, university, or
commission, or a county, city and county, city, regional agency,
public district, school district, or other political entity.
(i) (1) "Renewable energy" means a device or technology that
conserves or produces heat, processes heat, space heating, water
heating, steam, space cooling, refrigeration, mechanical energy,
electricity, or energy in any form convertible to these uses, that
does not expend or use conventional energy fuels, and that uses any
of the following electrical generation technologies:
(A) Biomass.
(B) Solar thermal.
(C) Photovoltaic.
(D) Wind.
(E) Geothermal.
(2) For purposes of this subdivision, "conventional energy fuel"
means any fuel derived from petroleum deposits, including, but not
limited to, oil, heating oil, gasoline, fuel oil, or natural gas,
including liquefied natural gas, or nuclear fissionable materials.
(3) Notwithstanding paragraph (1), for purposes of this section,
"renewable energy" also means ultralow-emission equipment for energy
generation based on thermal energy systems such as natural gas
turbines and fuel cells.
(j) "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.
SEC. 2. Section 26029.2 26011.7 is
added to the Public Resources Code, to read:
26029.2. 26011.7. (a) To promote
the creation of jobs and reduction of greenhouse gases, the authority
may recommend that approve a project
be exempted from sales and use tax and forward the
recommendation to the State Board of Equalization for consideration
of granting an exemption for which the purchase, sale,
or lease of tangible personal property qualifies for the sales and
use tax exclusion pursuant to Section 6010.8 of the Revenue and
Taxation Code.
(b) In recommending a project for the sales and use tax exemption
(b) In approving a project for which
the purchase, sale, or lease of tangible personal property qualifies
for the sales and use tax exclusion pursuant to Section 6010.8 of the
Revenue and Taxation Code , the authority shall
consider all of the following criteria:
(1) 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 exemption
exclusion .
(2) The extent to which the project will create new, permanent
jobs in California.
(3) The extent to which the project is consistent with local and
state planning.
(4) The extent to which the project will produce quantifiable,
verifiable, and sustainable reductions in the emissions of greenhouse
gases as defined in subdivision (g) of Section 38505 of the Health
and Safety Code.
(5) Any other factors that the authority deems appropriate.
(c) Once exemptions granted exclusions
pursuant to Section 6010.8 of the Revenue and Taxation Code for
projects recommended approved by the
authority pursuant to this section exceed one hundred million dollars
($100,000,000) annually, the authority shall provide a 20-day notice
to the Legislature for additional recommendations
approvals made pursuant to this section.
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