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AB-1110 Zero-emission vehicles: California Clean Fleet Accelerator Program: Climate Catalyst Revolving Loan Fund Program.(2021-2022)

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Date Published: 03/23/2021 09:00 PM
AB1110:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1110

Introduced by Assembly Member Robert Rivas
(Coauthors: Assembly Members Chiu, Cristina Garcia, and Stone)

February 18, 2021

An act to amend Sections 63048.92 and 63048.93 of, and to add Chapter 14 (commencing with Section 14990) to Part 5.5 of Division 3 of Title 2 of, the Government Code, and to add and repeal Section 6377.5 of the Revenue and Taxation Code, relating to climate catalyst projects.


LEGISLATIVE COUNSEL'S DIGEST


AB 1110, as amended, Robert Rivas. Zero-emission vehicles: California Clean Fleet Accelerator Program: sales and use tax exemption: Climate Catalyst Revolving Loan Fund Program.
(1) Existing law, the Charge Ahead California Initiative, administered by the State Air Resources 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 establishing 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.
This bill would establish the California Clean Fleet Accelerator Program, administered by the Department of General Services (DGS). The bill would require the Governor’s Office of Business and Economic Development (GO-Biz), DGS, in consultation with specified state agencies and regional and local entities, to develop a nonmandatory master service agreement to solicit bids from eligible vendors for standardized, bulk purchase options for the acquisition of zero-emission fleet vehicles, as defined, by a public agency, as defined. The bill would require that the master service agreement, at minimum, establish standard pricing for bulk purchases of zero-emission fleet vehicles, taking into consideration applicable financial incentives and low-cost financing options. The bill would require GO-Biz DGS to provide for the first round of zero-emission fleet vehicle acquisitions under the master service agreement no later than January 31, 2022, to the extent feasible, or otherwise as soon thereafter as is reasonably practicable. The bill would establish the Office of the Clean Vehicles Ombudsman, Ombudsperson, under the control of a director known as the Clean Vehicles Ombudsman, Ombudsperson, within DGS the Governor’s Office of Business and Economic Development (GO-Biz) and require the ombudsman, ombudsperson, among other things, to provide technical assistance to a public agency in the procurement of zero-emission fleet vehicles upon request.
(2) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in GO-Biz and, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development facilities or public development facilities, as those terms are defined. Existing law, the Climate Catalyst Revolving Loan Fund Act of 2020, establishes the Climate Catalyst Revolving Loan Fund Program and authorizes the I-Bank to provide financial assistance to any eligible sponsor or participating party for eligible climate catalyst projects, as provided, and defines various terms for these purposes. Existing law creates the Climate Catalyst Revolving Loan Fund and makes moneys available, upon appropriation, for expenditure for purposes of the Climate Catalyst Revolving Loan Fund Program.
This bill would expressly provide that the acquisition of a zero-emission fleet vehicle pursuant to the master service agreement developed in accordance with the California Clean Fleet Accelerator Program, as described above, is a climate catalyst project eligible for financial assistance under the Climate Catalyst Revolving Loan Fund Program. The bill would require that financial assistance under the program include loan loss reserves, revolving loan funds, and other financial instruments to facilitate climate catalyst projects that consist of the acquisition of zero-emission fleet vehicles pursuant to that master service agreement.

(3)Existing state sales and use tax laws impose a tax on retailers measured by the 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. The Sales and Use Tax Law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or consumption of, any zero-emission technology transit bus sold to a city, county, city and county, transportation or transit district, or other public agency that provides transit services to the public that is eligible for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.

This bill, until January 1, 2027, would exempt from these taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a zero-emission fleet vehicle acquired by a public agency from an eligible vendor pursuant to the master service agreement developed under the California Clean Fleet Accelerator Program, as described above.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws.

This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes.

Existing law requires that any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, or tax exemptions contain, among other things, specific goals, purposes, and objectives that the tax expenditure or exemption will achieve, detailed performance indicators, and data collection requirements.

This bill would state the intent of the Legislature to apply these requirements with respect to the sales and use exemption allowed by the bill, as described above.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Chapter 14 (commencing with Section 14990) is added to Part 5.5 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER  14. California Clean Fleet Accelerator Program

14990.
 For purposes of this chapter:
(a) “Eligible vendor” means a person for which both of the following apply: that is any of the following:

(1)The person is either of the following:

(A)

(1) A dealer, as that term in is defined in Section 285 of the Vehicle Code, that sells a medium- or heavy-duty zero-emission fleet vehicle to a public agency.

(B)A manufacturer of a zero-emission fleet vehicle that sells that zero-emission fleet vehicle directly to a public agency.

(2)A public agency is authorized, under the laws of this state and the policies of the department, to acquire a zero-emission fleet vehicle from the person.

(2) Any vendor, eligible under the laws of this state to contract with a public agency, of a zero-emission vehicle that is off-road equipment engaged in the sale of that equipment.
(3) Any vendor, eligible under the laws of this state to contract with a public agency, of a zero-emission vehicle that is an electric bicycle, as that term is defined in Section 312.5 of the Vehicle Code, or electric cargo bicycle.
(b) “Office” means the Governor’s Office of Business and Economic Development.
(c) “Ombudsman” “Ombudsperson” means the Office of the Clean Vehicles Ombudsman Ombudsperson created in Section 14992.
(d) “Public agency” means all of the following:
(1) The state and any state agency, as that term is defined in Section 11000.
(2) The Regents of the University of California.
(3) The Trustees of the California State University.
(4) A county.
(5) A city.
(6) Any district formed as an agency of the state, pursuant to general law or a special act, for the local performance of governmental or proprietary functions within limited geographic boundaries, including, but not limited to, the following:
(A) A school district.
(B) A transit district.
(7) Any other political subdivision of this state.
(e) “Vehicle fleet” means two or more vehicles under common ownership of, or operation by, a public agency.
(f) “Zero-emission fleet vehicle” means a vehicle vehicle, off-road equipment, including, but not limited to, a forklift, motorized construction or utility equipment, street sweeper, or other special-use municipal vehicle, an electric bicycle, as that term is defined in Section 312.5 of the Vehicle Code, or an electric cargo bicycle acquired by a public agency for use as part of its vehicle fleet that produces no emissions of criteria pollutants, toxic air contaminants, or greenhouse gases when stationary or operating.

14992.
 (a) (1) There is hereby established the California Clean Fleet Accelerator Program, which the department shall administer in accordance with this chapter.
(2) The department may adopt, amend, or repeal guidelines and regulations and promulgate forms in order to carry out its duties under this chapter.
(b) There is within the department office the Office of the Clean Vehicles Ombudsman, Ombudsperson, which shall be under the control of a director known as the Clean Vehicles Ombudsman. Ombudsperson. The Clean Vehicles Ombudsman Ombudsperson shall be appointed by, and serve at the pleasure of, the director and shall report directly to the director.

14994.
 (a) (1) The office, department, in consultation with those entities specified in paragraph (2), shall develop a nonmandatory master service agreement to solicit bids from eligible vendors for standardized, bulk purchase options for the acquisition of zero-emission fleet vehicles by a public agency, consistent with the requirements of this chapter.
(2) The office department, in consultation with the ombudsperson, shall consult with each of the following entities in developing the master service agreement described in paragraph (1):
(A) The office.

(A)

(B) The Transportation Agency.

(B)The department.

(C) The State Energy Resources Conservation and Development Commission.
(D) The State Air Resources Board.
(E) The Infrastructure and Economic Development Bank.
(F) The Public Utilities Commission.
(G) The California Alternative Energy and Advanced Transportation Financing Authority.
(H) Five cities with populations less than 150,000.
(I) At least two regional organizations, which may include, but are not limited to, councils of governments or metropolitan planning organizations.
(J) Two jurisdictions that, in the office’s department’s judgment, have demonstrated experience in acquiring electric vehicles for use in their vehicle fleets.
(b) The master service agreement described in subdivision (a) shall, at minimum, establish standard pricing for bulk purchases of zero-emission fleet vehicles, taking into consideration any applicable state or federal tax credits or other financial incentives and low-cost financing options available to public agencies for that purpose.
(c) (1) Subject to paragraph (2), a public agency that acquires a zero-emission fleet vehicle pursuant to the master service agreement developed pursuant to this section shall comply with all other applicable laws and policies governing the acquisition of that zero-emission fleet vehicle, including, but not limited to, the Public Contract Code and the regulations of the department.
(2) In awarding contracts for the bulk purchase of zero-emission fleet vehicles pursuant to the master agreement developed pursuant to this section, a public agency shall give additional consideration to eligible vendors that meet the following criteria:
(A) The eligible vendor utilizes a skilled and trained workforce, as that term is defined in Section 2601 of the Public Contract Code.
(B) The eligible vendor demonstrates job creation within this state.
(C) The eligible vendor commits to providing training and hiring opportunities to residents in disadvantaged communities.
(D) The eligible vendor has a demonstrated commitment to racial equity.
(d) In carrying out its duties under this section, the office department shall, to the extent feasible, provide for the first round of zero-emission fleet vehicle acquisition by public agencies under the master service agreement developed pursuant to this section no later than January 31, 2022, or, if that date is not feasible, as soon thereafter as is reasonably practicable.

14996.
 (a) The ombudsman ombudsperson shall do all of the following:
(1) Upon the request of a public agency, provide technical assistance to the public agency in the procurement of zero-emission fleet vehicles.
(2) In cooperation with the office, assist a public agency in procuring zero-emission fleet vehicles by bulk purchase under the master service agreement developed pursuant to Section 14994.
(3) Actively reach out to small and rural communities to offer technical assistance and other state resources.
(4) Provide any other assistance to a public agency in procuring zero-emission fleet vehicles that is consistent with the purposes of this chapter, including, but not limited to, identifying available incentives and financing mechanisms.
(b) In carrying out its duties under this section, the ombudsman ombudsperson shall prioritize assisting public agencies that serve disadvantaged communities.

SEC. 2.

 Section 63048.92 of the Government Code is amended to read:

63048.92.
 The definitions contained in this section are in addition to the definitions contained in Section 63010 and together with the definitions contained in that section shall govern the construction of this article, unless the context requires otherwise:
(a) “Bank” means the Infrastructure and Economic Development Bank.
(b)  “Climate catalyst project” means any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within California that are consistent with, and intended to, further California’s climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure. “Climate catalyst project” includes, but is not limited to, the acquisition of a zero-emission fleet vehicle pursuant to the master service agreement developed in accordance with the California Clean Fleet Accelerator Program (Chapter 14 (commencing with Section 14990) of Part 5.5 of Division 3 of Title 2).
(c) “Climate Catalyst Revolving Loan Fund” means revolving funds by that name created under, and administered pursuant to, this article to provide financial assistance for climate catalyst projects.
(d) “Climate Catalyst Revolving Loan Fund Program” means the program of that name to administer the Climate Catalyst Revolving Loan Fund and to provide financial assistance for climate catalyst projects, to be administered by the bank pursuant to this article and criteria, priorities, and guidelines to be adopted by the bank board.
(e) “Sponsor” and “participating party” shall mean the same as defined in Section 63010, but also include federally recognized Native American tribes and tribal business enterprises located in California.

SEC. 3.

 Section 63048.93 of the Government Code is amended to read:

63048.93.
 (a) (1) The bank is hereby authorized and empowered to provide financial assistance under the Climate Catalyst Revolving Loan Fund Program to any eligible sponsor or participating party either directly or to a lending or financial institution, in connection with the financing or refinancing of a climate catalyst project, in accordance with an agreement or agreements, between the bank and the sponsor or participating party, including, but not limited to, tribes, either as a sole lender or in participation or syndication with other lenders.
(2) Financial assistance provided under the Climate Catalyst Revolving Loan Fund Program shall include, but is not limited to, loan loss reserves, revolving loan funds, and other financial instruments to facilitate climate catalyst projects that consist of the acquisition of zero-emission fleet vehicles pursuant to the master service agreement developed pursuant to Section 14994.
(b) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 does not apply to any criteria, priorities, and guidelines adopted by the bank in connection with the Climate Catalyst Revolving Loan Fund Program or any other program of the bank.
(c) Repayments of financing made under the Climate Catalyst Revolving Loan Fund Program shall be deposited in the appropriate account created within the Climate Catalyst Revolving Loan Fund.
(d) The Strategic Growth Council, in consultation with the Labor and Workforce Development Agency, shall advise the Legislature prior to the end of each calendar year, commencing with the calendar year of 2020, of potential categories of climate catalyst projects that would focus on the state’s key climate mitigation and resilience priorities. The Strategic Growth Council’s recommendations may include indicative percentages of investment allocations across identified priority sectors. The Strategic Growth Council shall inform the bank of the advice provided to the Legislature.

SEC. 4.Section 6377.5 is added to the Revenue and Taxation Code, to read:
6377.5.

(a)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, a zero-emission fleet vehicle acquired by a qualified public agency from an eligible vendor.

(b)For purposes of this section:

(1)“Eligible vendor” has the same meaning as defined in Section 14990 of the Government Code.

(2)“Master service agreement” means the master service agreement developed for the bulk purchase of zero-emission vehicles by a qualified public agency from an eligible vendor pursuant to Section 14994 of the Government Code.

(3)“Qualified public agency” means a public agency, as that term is defined in Section 14990 of the Government Code, that acquires a zero-emission fleet vehicle from an eligible vendor pursuant to the master service agreement.

(4)“Zero-emission fleet vehicle” has the same meaning as defined in Section 14990 of the Government Code.

(c)An exemption shall not be allowed under this section unless the purchaser furnishes the retailer with an exemption certificate, completed in accordance with any instructions or regulations as the department may prescribe, and the retailer retains the exemption certificate in its records and furnishes it to the department upon request.

(d)(1)Notwithstanding the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) and the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section shall not apply with respect to any tax levied by a county, city, or district 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, any tax levied 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.

(e)This section shall remain in effect only until January 1, 2027, and as of that date is repealed.

SEC. 5.

It is the intent of the Legislature to comply with the requirements of Section 41 of the Revenue and Taxation Code with respect to the exemption allowed by Section 6377.5 of the Revenue and Taxation Code, as added by this act.