6377.2.
(a) On or after January 1, 2025, and before January 1, 2030, there are exempted from the taxes imposed by this part the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, any zero-emission public transportation ferry sold to a city, county, city and county, transportation or transit district, or other public agency that provides transit services to the public and that is subject to the State Air Resources Board regulation on airborne toxic control measures for commercial harbor craft (Section 93118.5 of Title 17 of the California Code of Regulations).(b) For purposes of this section, “zero-emission public transportation ferry” means ferryboats operated, sponsored, funded, or subsidized by an STA-eligible operator, as that term is defined in Section 99312.2 of the Public Utilities Code, that produce no emissions of criteria pollutants, toxic air contaminants, and greenhouse gases when stationary or operating, as determined by the State Air Resources Board.
(c) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by subdivision (a) does not apply with respect to any tax levied pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Section 6051.2 or 6201.2, pursuant to Section 35 of Article XIII of the California Constitution, or any tax levied pursuant to Section 6051 or 6201 that is deposited in the State Treasury to the credit of the Local Revenue Fund 2011 pursuant to Section 6051.15 or 6201.15.
(d) (1) For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:
(A) The specific goals, purposes, and objectives that the exemption provided by this section will achieve are the following:
(i) To assist transit agencies in transitioning public transportation ferry fleets to zero emission by reducing upfront capital costs and incremental costs between technologies.
(ii) To overcome an important upfront funding shortfall that currently impedes procurement of zero-emission public transportation ferries and is critically needed to help public transit agencies comply with the State Air Resources Board’s Commercial Harbor Craft regulations.
(iii) To eliminate mobile criteria pollutant emissions and clean the air in disadvantaged communities.
(iv) To substantially reduce greenhouse gas emissions.
(B) The performance indicators for the Legislature to use in determining if the tax exemption achieves the stated goals, purposes, and objectives are as follows:
(i) The annual number of zero-emission public transit ferry vessel purchases by transit authorities and agencies statewide.
(ii) The annual number of zero-emission public transportation ferries purchased during implementation of the amendments to the State Air Resources Board’s Commercial Harbor Craft regulations.
(2) The data collection requirements to enable the Legislature to determine whether the exemption is meeting, failing to meet, or exceeding its specified goals, purposes, and objectives are as follows:
(A) The Legislative Analyst’s Office shall review the effectiveness of the tax exemption and may request information from the California Department of Tax and Fee Administration and any state governmental entity with authority relating to the purchasing of public transportation ferries.
(B) The California Department of Tax and Fee Administration and any state governmental entity with authority relating to the purchasing of public transportation ferries shall provide to the Legislative Analyst’s Office any data requested by the Legislative Analyst’s Office pursuant to this paragraph, to the extent the data is available.
(3) The Legislative Analyst’s Office shall submit a report to the Legislature on the effectiveness of the exemption provided by this section, in compliance with Section 9795 of the Government Code, no later than May 1, 2028.
(4) The disclosure requirements of paragraphs (2) and (3) shall be treated as an exception to the requirements of Sections 7056 and 7056.5.
(e) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.