Amended in Assembly June 9, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 199


Introduced by Assembly Member Eggman

begin insert

(Coauthors: Assembly Members Dahle, Hadley, Harper, Rendon, Williams, and Wood)

end insert

January 29, 2015


An act to amend Section 26003 of the Public Resources Code, relating to alternative energy, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 199, as amended, Eggman. Alternative energy: recycled feedstock.

Existing law establishes the California Alternative Energy and Advanced Transportation Financing Authority to provide financial assistance for projects that promote the use of alternative energies. Existing law, until January 1, 2021, authorizes the authority to approve a project for financial assistance in the form of a sales and use tax exclusion. Existing law prohibits the authority from granting sales and use tax exclusions that exceed $100,000,000 for each calendar year.

This bill would expand projects eligible for the sales and use tax exclusion to include projects that process or utilize recycled feedstock, but would not include a project that processes or utilizes recycled feedstock in a manner that constitutes disposal.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 26003 of the Public Resources Code, as
2amended by Section 1 of Chapter 540 of the Statutes of 2013, is
3amended to read:

4

26003.  

(a) As used in this division, unless the context
5otherwise requires:

6(1) (A) “Advanced manufacturing” means manufacturing
7processes that improve existing or create entirely new materials,
8products, and processes through the use of science, engineering,
9or information technologies, high-precision tools and methods, a
10high-performance workforce, and innovative business or
11organizational models utilizing any of the following technology
12areas:

13(i) Microelectronics and nanoelectronics, including
14semiconductors.

15(ii) Advanced materials.

16(iii) Integrated computational materials engineering.

17(iv) Nanotechnology.

18(v) Additive manufacturing.

19(vi) Industrial biotechnology.

20(B) “Advanced manufacturing” includes any of the following:

21(i) Systems that result from substantive advancement, whether
22incremental or breakthrough, beyond the current industry standard,
23in the production of materials and products. These advancements
24include improvements in manufacturing processes and systems
25that are often referred to as “smart” or “intelligent” manufacturing
26systems, which integrate computational predictability and
27operational efficiency.

28(ii) (I) Sustainable manufacturing systems and manufacturing
29technologies that minimize the use of resources while maintaining
30or improving cost and performance.

31(II) Sustainable manufacturing systems and manufacturing
32technologies do not include those required to be undertaken
33pursuant to state or federal law or regulations, air district rules or
34regulations, memoranda of understanding with a governmental
35entity, or legally binding agreements or documents. The State Air
36Resources Board shall advise the authority to ensure that the
37requirements of this clause are met.

P3    1(2) (A) “Advanced transportation technologies” means
2emerging commercially competitive transportation-related
3technologies identified by the authority as capable of creating
4long-term, high value-added jobs for Californians while enhancing
5the state’s commitment to energy conservation, pollution and
6greenhouse gas emissions reduction, and transportation efficiency.

7(B) “Advanced transportation technologies” does not include
8those projects required to be undertaken pursuant to state or federal
9law or regulations, air district rules or regulations, memoranda of
10understanding with a governmental entity, or legally binding
11agreements or documents. The State Air Resources Board shall
12advise the authority regarding projects that are excluded pursuant
13to this subparagraph.

14(3) (A) “Alternative sources” means devices or technologies
15used for a renewable electrical generation facility, as defined in
16paragraph (1) of subdivision (a) of Section 25741, a combined
17heat and power system, as defined in Section 2840.2 of the Public
18Utilities Code, distributed generation and energy storage
19technologies eligible under the self-generation incentive program
20pursuant to Section 379.6 of the Public Utilities Code, as
21determined by the Public Utilities Commission, or a facility
22designed for the production of renewable fuels, the efficient use
23of which reduce the use of fossil or nuclear fuels, and energy
24efficiency devices or technologies that reduce the need for new
25electric generation and reduce emissions of toxic and criteria
26pollutants and greenhouse gases.

27(B) “Alternative sources” does not include a hydroelectric
28facility that does not meet state laws pertaining to the control,
29appropriation, use, and distribution of water, including, but not
30limited to, the obtaining of applicable licenses and permits.

31(4) “Authority” means the California Alternative Energy and
32Advanced Transportation Financing Authority established pursuant
33to Section 26004, and any board, commission, department, or
34officer succeeding to the functions of the authority, or to which
35the powers conferred upon the authority by this division shall be
36given.

37(5) “Cost” as applied to a project or portion of the project
38financed under this division means all or part of the cost of
39construction and acquisition of all lands, structures, real or personal
40property or an interest in the real or personal property, rights,
P4    1rights-of-way, franchises, easements, and interests acquired or
2used for a project; the cost of demolishing or removing any
3buildings or structures on land so acquired, including the cost of
4acquiring any lands to which those buildings or structures may be
5moved; the cost of all machinery, equipment, and furnishings,
6financing charges, interest prior to, during, and for a period after,
7completion of construction as determined by the authority;
8provisions for working capital; reserves for principal and interest
9and for extensions, enlargements, additions, replacements,
10renovations, and improvements; the cost of architectural,
11engineering, financial, accounting, auditing and legal services,
12plans, specifications, estimates, administrative expenses, and other
13expenses necessary orbegin delete incidentend deletebegin insert incidentalend insert to determining the
14feasibility of constructing any project or incident to the
15construction, acquisition, or financing of a project.

16(6) “Financial assistance” includes, but is not limited to, loans,
17loan loss reserves, interest rate reductions, proceeds of bonds issued
18by the authority, bond insurance, loan guarantees or other credit
19enhancements or liquidity facilities, contributions of money, or a
20combination thereof, as determined by, and approved by the
21resolution of, the board.

22(7) (A) “Participating party” means a person, federal or state
23agency, department, board, authority, or commission, state or
24community college, or university, or a city or county, regional
25agency, public district, school district, or other political entity
26engaged in the business or operations in the state, whether
27organized for profit or not for profit, that applies for financial
28assistance from the authority for the purpose of implementing a
29project.

30(B) (i) For purposes of Section 6010.8 of the Revenue and
31Taxation Code, “participating party” means an entity specified in
32subparagraph (A) that seeks financial assistance pursuant to Section
3326011.8.

34(ii) For purposes of Section 6010.8 of the Revenue and Taxation
35Code, an entity located outside of the state, including an entity
36located overseas, is considered to be a participating party and is
37eligible to apply for financial assistance pursuant to Section
3826011.8 if the participating party commits to, and demonstrates
39that, the party will be opening a manufacturing facility in the state.

P5    1(iii) It is the intent of the Legislature by adding clause (ii) to
2clarify existing law and ensure that an out-of-state entity or
3overseas entity is eligible to apply for financial assistance pursuant
4to Section 26011.8.

5(8) (A) “Project” means a land, building, improvement to the
6land or building, rehabilitation, work, property, or structure, real
7or personal, stationary or mobile, including, but not limited to,
8machinery and equipment utilized in the state, whether or not in
9existence or under construction, that utilizes, or is designed to
10utilize, an alternative source, or that is utilized for the design,
11technology transfer, manufacture, production, assembly,
12distribution, or service of advanced transportation technologies or
13alternative source components.

14(B) “Project,” for purposes of Section 26011.8 and Section
156010.8 of the Revenue and Taxation Code, means tangible personal
16property that primarily processes recycled feedstock that is intended
17to be reused in the production of another product or utilizes
18recycled feedstock in the production of another product or soil
19amendment, or that is utilized in the state for the design,
20manufacture, production, or assembly of advanced manufacturing,
21advanced transportation technologies, or alternative source
22products, components, or systems. “Project” does not include
23tangible personal property that processes or utilizes recycled
24feedstock in a manner that would constitute disposal as defined in
25subdivision (b) of Section 40192.

26(9) “Recycled feedstock” means materials that would otherwise
27be destined for disposal, having completed its intended end use
28and product lifecycle.

29(10) “Revenue” means all rents, receipts, purchase payments,
30loan repayments, and all other income or receipts derived by the
31authority from a project, or the sale, lease, or other disposition of
32alternative source or advanced transportation technology facilities,
33or the making of loans to finance alternative source or advanced
34transportation technology facilities, and any income or revenue
35derived from the investment of money in any fund or account of
36the authority.

37(b) This section shall become inoperative on July 1, 2016, and,
38as of January 1, 2017, is repealed, unless a later enacted statute,
39that becomes operative on or before January 1, 2017, deletes or
40extends the dates on which it becomes inoperative and is repealed.

P6    1

SEC. 2.  

Section 26003 of the Public Resources Code, as
2amended by Section 2 of Chapter 540 of the Statutes of 2013, is
3amended to read:

4

26003.  

(a) As used in this division, unless the context
5otherwise requires:

6(1) (A)  “Advanced transportation technologies” means
7emerging commercially competitive transportation-related
8technologies identified by the authority as capable of creating
9long-term, high value-added jobs for Californians while enhancing
10the state’s commitment to energy conservation, pollution and
11greenhouse gas emissions reduction, and transportation efficiency.

12(B) “Advanced transportation technologies” does not include
13those projects required to be undertaken pursuant to state or federal
14law or regulations, air district rules or regulations, memoranda of
15understanding with a governmental entity, or legally binding
16agreements or documents. The State Air Resources Board shall
17advise the authority regarding projects that are excluded pursuant
18to this subparagraph.

19(2) (A) “Alternative sources” means devices or technologies
20used for a renewable electrical generation facility, as defined in
21paragraph (1) of subdivision (a) of Section 25741, a combined
22heat and power system, as defined in Section 2840.2 of the Public
23Utilities Code, distributed generation and energy storage
24technologies eligible under the self-generation incentive program
25pursuant to Section 379.6 of the Public Utilities Code, as
26determined by the Public Utilities Commission, or a facility
27designed for the production of renewable fuels, the efficient use
28of which reduce the use of fossil or nuclear fuels, and energy
29efficiency devices or technologies that reduce the need for new
30electric generation and reduce emissions of toxic and criteria
31pollutants and greenhouse gases.

32(B) “Alternative sources” does not include a hydroelectric
33facility that does not meet state laws pertaining to the control,
34appropriation, use, and distribution of water, including, but not
35limited to, the obtaining of applicable licenses and permits.

36(3) “Authority” means the California Alternative Energy and
37Advanced Transportation Financing Authority established pursuant
38to Section 26004, and any board, commission, department, or
39officer succeeding to the functions of the authority, or to which
P7    1the powers conferred upon the authority by this division shall be
2given.

3(4) “Cost” as applied to a project or portion of the project
4financed under this division means all or part of the cost of
5construction and acquisition of all lands, structures, real or personal
6property or an interest in the real or personal property, rights,
7rights-of-way, franchises, easements, and interests acquired or
8used for a project; the cost of demolishing or removing any
9buildings or structures on land so acquired, including the cost of
10acquiring any lands to which those buildings or structures may be
11moved; the cost of all machinery, equipment, and furnishings,
12financing charges, interest prior to, during, and for a period after,
13completion of construction as determined by the authority;
14provisions for working capital; reserves for principal and interest
15and for extensions, enlargements, additions, replacements,
16renovations, and improvements; the cost of architectural,
17engineering, financial, accounting, auditing and legal services,
18plans, specifications, estimates, administrative expenses, and other
19expenses necessary orbegin delete incidentend deletebegin insert incidentalend insert to determining the
20feasibility of constructing any project or incident to the
21construction, acquisition, or financing of a project.

22(5) “Financial assistance” includes, but is not limited to, loans,
23loan loss reserves, interest rate reductions, proceeds of bonds issued
24by the authority, bond insurance, loan guarantees or other credit
25enhancements or liquidity facilities, contributions of money, or a
26combination thereof, as determined by, and approved by the
27resolution of, the board.

28(6) (A) “Participating party” means a person, federal or state
29agency, department, board, authority, or commission, state or
30community college, or university, or a city or county, regional
31agency, public district, school district, or other political entity
32engaged in the business or operations in the state, whether
33organized for profit or not for profit, that applies for financial
34assistance from the authority for the purpose of implementing a
35project.

36(B) (i) For purposes of Section 6010.8 of the Revenue and
37Taxation Code, “participating party” means an entity specified in
38subparagraph (A) that seeks financial assistance pursuant to Section
3926011.8.

P8    1(ii) For purposes of Section 6010.8 of the Revenue and Taxation
2Code, an entity located outside of the state, including an entity
3located overseas, is considered to be a participating party and is
4eligible to apply for financial assistance pursuant to Section
526011.8 if the participating party commits to, and demonstrates
6that, the party will be opening a manufacturing facility in the state.

7(iii) It is the intent of the Legislature by adding clause (ii) to
8clarify existing law and ensure that an out-of-state entity or
9overseas entity is eligible to apply for financial assistance pursuant
10to Section 26011.8.

11(7) (A) “Project” means a land, building, improvement to the
12land or building, rehabilitation, work, property, or structure, real
13or personal, stationary or mobile, including, but not limited to,
14machinery and equipment utilized in the state, whether or not in
15existence or under construction, that utilizes, or is designed to
16utilize, an alternative source, or that is utilized for the design,
17technology transfer, manufacture, production, assembly,
18distribution, or service of advanced transportation technologies or
19alternative source components.

20(B) “Project,” for purposes of Section 26011.8 and Section
216010.8 of the Revenue and Taxation Code, means tangible personal
22property that primarily processes recycled feedstock that is intended
23to be reused in the production of another product or utilizes
24recycled feedstock in the production of another product or soil
25amendment, or that is utilized in the state for the design,
26manufacture, production, or assembly of advanced transportation
27technologies or alternative source products, components, or
28systems. “Project” does not include tangible personal property that
29processes or utilizes recycled feedstock in a manner that would
30constitute disposal as defined in subdivision (b) of Section 40192.

31(8) “Recycled feedstock” means materials that would otherwise
32be destined for disposal, having completed its intended end use
33and product lifecycle.

34(9) “Revenue” means all rents, receipts, purchase payments,
35loan repayments, and all other income or receipts derived by the
36authority from a project, or the sale, lease, or other disposition of
37alternative source or advanced transportation technology facilities,
38or the making of loans to finance alternative source or advanced
39transportation technology facilities, and any income or revenue
P9    1derived from the investment of money in any fund or account of
2the authority.

3(b) This section shall become operative on July 1, 2016.

4

SEC. 3.  

This act is an urgency statute necessary for the
5immediate preservation of the public peace, health, or safety within
6the meaning of Article IV of the Constitution and shall go into
7immediate effect. The facts constituting the necessity are:

8In order to provide incentives for the development of projects
9that process or utilize recycled feedstock for the protection of the
10public health and environment, it is necessary for this act to take
11effect immediately.



O

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