California Code of Regulations › Title 4 - Business Regulations › Division 13 - California Alternative Energy and Advanced Transportation Financing Authority › Article 2 - Manufacturing Sales and Use Tax Exclusion Program › Section 10031 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				"Administrative Fee" means the fee payable upon the execution of the Regulatory
				Agreement between the Applicant and the Authority and at the time of submitting
				the semi-annual report to CAEATFA.
(b) "Advanced Manufacturing" is defined as
				stated in Section
				26003(a)
				of the Public Resources Code.
(c)
				"Advanced Transportation Technology" or "Advanced Transportation Technologies"
				is defined as stated in Section
				26003(a)
				of the Public Resources Code.
(d)
				"Alternative Sources" is defined as stated in Sections
				26003(a)
				of the Public Resources Code.
(e)
				"Applicant(s)" means a Participating Party submitting an Application.
(f) "Application" means a completed formal
				request for sales and use tax exclusion as specified in Section
				10032.
(g) "Application Fee" means the fee payable
				at the time of Application for a sales and use tax exclusion.
(h) "Authority" means the California
				Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)
				established pursuant to Division 16 of the Public Resources Code (commencing
				with Section
				26000).
(i) "Biofuel" includes "Biodiesel," a fuel
				comprised of mono-alkyl esters of long chain fatty acids derived from vegetable
				oils or animal fats, and "Biogas," the raw gaseous mixture comprised primarily
				of methane and carbon dioxide and derived from the anaerobic decomposition of
				organic matter in a landfill, lagoon, or constructed reactor
				(digester).
(j) "California
				Supplier" means a business entity that manufactures, assembles, or produces its
				product or service in the state of California.
(k) "Competitive Criteria" means a set of
				Project or Applicant characteristics, as determined in Section
				10032(a)(8)(B),
				which are measurable at the time of application.
(l) "Corporate Headquarters" means the
				location that is the primary center of direction, control and coordination for
				the company.
(m) "Emerging
				Strategic Industry" means an innovative industry, technology or product that
				may be identified by the Executive Director as having a potentially significant
				impact on the State's environmental goals or economy, the advancement of which
				are in the public interest, and which advance the purposes of the Program. The
				Executive Director may from time to time develop or add to a list of Emerging
				Strategic Industries which will be identified by North American Industry
				Classification System (NAICS) code (or its equivalent) or by description of the
				product or manufacturing process. The list of these industries will be publicly
				posted on the Authority's website.
(n) "Estimated Useful Lifespan" means the
				length of time the Qualified Property or Advanced Transportation Technology or
				Alternative Source product, component, or system can reasonably be expected to
				last in a productive capacity, as identified in the Application or the
				Regulatory Agreement.
(o)
				"Executive Director" means the executive director of CAEATFA.
(p) "Facility" or "Facilities" means a
				design, manufacturing, production, or assembly facility that includes or will
				include tangible personal property utilized for the design, manufacture,
				production, or assembly of Advanced Manufacturing, Advanced Transportation
				Technologies or Alternative Source products, components, or systems, or a
				facility that includes or will include tangible personal property that at least
				50 percent of its use is either to process Recycled feedstock that is intended
				to be reused in the production of another product or using Recycled feedstock
				in the production of another product or soil amendment. Facilities involving
				more than one location may be combined in a single Application, provided the
				locations are part of a single process. Where facilities at multiple locations
				are performing the same or substantially similar operations they will require
				separate Applications.
(q)
				"Financial Assistance" means the granting of a sales and use tax exclusion by
				the Authority pursuant to Section
				26011.8(a)
				of the Public Resources Code.
(r)
				"Green Component" means the component or system within Advanced Transportation
				Technologies or Alternative Source products, components, or systems that is
				primarily responsible for or required to enable the increase in energy
				efficiency, Alternative Source generation, or pollution reduction.
(s) "Industry Cluster" means a concentration
				of interrelated businesses or industries in a region that, by virtue of being
				located in proximity, act to increase productivity or economic growth in that
				region. For purposes of receiving points as part of an Application, Industry
				Clusters must be recognized by a California state or local government entity,
				regional economic development authority, or association of governments as an
				industry cluster, strategic cluster, or competitive cluster of the region
				within which the Applicant's Project resides.
(t) "Participating Party" is defined as
				stated in Section
				26003(a)(7)(A) of
				the Public Resources Code.
(u)
				"Program" means the sales and use tax exclusion program created pursuant to
				Public Resources Code Section
				26011.8.
(v) "Project" is defined as stated in Section
				26011.8(b)(1)
				of the Public Resources Code. Project does not include machinery or equipment
				that utilizes or is designed to utilize an Alternative Source.
(w) "Qualified Product" means an Advanced
				Transportation Technology or Alternative Source product, component or system, a
				product produced with an Advanced Manufacturing Process, or a product made by
				processing Recycled feedstock or utilizing Recycled feedstock.
(x) "Qualified Property" means the tangible
				personal property identified in the Application or Regulatory Agreement to be
				purchased for use in the Facility if at least 50 percent of its use is either
				to process Recycled feedstock that is intended to be reused in the production
				of another product or using Recycled feedstock in the production of another
				product or Soil amendment; or tangible personal property that is used in the
				state for the design, manufacture, production, or assembly of Advanced
				Transportation Technologies, or Alternative Source products, components, or
				systems or utilized in an Advanced Manufacturing process. Qualified Property
				must be used for the purpose stated in the Application for a period equal to
				the longer of (a) one year or (b) one-half of the Estimated Useful Lifespan of
				the Qualified Property. The total value of Qualified Property necessary for the
				operation of the Facility and located on the same site as the Facility, but not
				directly used for the design, manufacture, production or assembly of advanced
				transportation technologies or alternative source products, components or
				systems shall not exceed one percent (1%) of the total value of all Qualified
				Property purchased by the Applicant.
(y) "Recognized Energy Efficiency Standard"
				is a statutory, regulatory, or voluntary set of minimum energy efficiency
				standards for one or more products, product components, or categories of
				products or product components, as designated by the Executive Director. The
				Executive Director may designate a standard as a Recognized Energy Efficiency
				Standard if it (a) has been adopted and currently maintained by a government
				agency, trade group, or nonprofit organization, (b) has clearly defined test
				methods, (c) contains product energy consumption ratings based on independent
				certification and testing, and (d) the energy consumption of products that meet
				the standards is significantly below the consumption of comparable
				products.
(z) "Recycled feedstock"
				is defined as stated in Section
				26011.8(b)(2)
				of the Public Resources Code.
(aa)
				"Recycled Resource Extraction Project" is a project that converts Recycled
				feedstock into materials that are used in subsequent manufacturing
				processes.
(ab) "Regulatory
				Agreement" means the agreement specified in Section
				10035.
(ac) "Small Project Pool" is the twenty
				million dollars ($20,000,000) in sales and use tax exclusion available to award
				only to Applications requesting two million dollars ($2,000,000) or less in
				sales and use tax exclusion through September each year as established in
				Section 10032(a)(4).
(ad) "Soil amendments" is defined as stated
				in Section
				26011.8(b)(3)
				of the Public Resources Code.
(ae)
				"Statutory Cap" means the maximum amount of sales and use tax exclusion the
				Authority may grant pursuant to Section
				26011.8(h)
				of the Public Resources Code.
1. New section
				  filed 10-4-2010 as an emergency; operative 10-4-2010 (Register 2010, No. 41). A
				  Certificate of Compliance must be transmitted to OAL by 4-4-2011 or emergency
				  language will be repealed by operation of law on the following
				  day
2. New section refiled 4-1-2011 as an emergency; operative
				  4-1-2011 (Register 2011, No. 13). A Certificate of Compliance must be
				  transmitted to OAL by 6-30-2011 or emergency language will be repealed by
				  operation of law on the following day.
3. New section refiled
				  6-24-2011 as an emergency; operative 6-24-2011 (Register 2011, No. 25). A
				  Certificate of Compliance must be transmitted to OAL by 9-22-2011 or emergency
				  language will be repealed by operation of law on the following
				  day.
4. Certificate of Compliance as to 6-24-2011 order, including
				  amendment of section and NOTE, transmitted to OAL 6-29-2011 and filed
				  8-10-2011; operative 9-28-2011 (Register 2011, No. 32).
5. Amendment
				  filed 10-7-2013 as a deemed emergency pursuant to Public Resources Code section
				  26009;
				  operative 10-7-2013 (Register 2013, No. 41). A Certificate of Compliance must
				  be transmitted to OAL by 4-7-2014 or emergency language will be repealed by
				  operation of law on the following day.
6. Amendment refiled 4-3-2014
				  as a deemed emergency pursuant to Public Resources Code section
				  26009;
				  operative 4-3-2014 (Register 2014, No. 14). A Certificate of Compliance must be
				  transmitted to OAL by 7-2-2014 or emergency language will be repealed by
				  operation of law on the following day.
7. Amendment refiled
				  6-30-2014 as a deemed emergency pursuant to Public Resources Code section
				  26009;
				  operative 6-30-2014 (Register 2014, No. 27). A Certificate of Compliance must
				  be transmitted to OAL by 9-29-2014 or emergency language will be repealed by
				  operation of law on the following day.
8. Certificate of Compliance
				  as to 6-30-2014 order, including amendment of subsections (h) and (n),
				  transmitted to OAL 9-29-2014 and filed 11-10-2014; amendments effective
				  11-10-2014 pursuant to Government Code section
				  11343.4(b)(3)
				  (Register 2014, No. 46).
9. New definitions of "Biofuel,"
				  "Competitive Criteria," "Corporate Headquarters," "Recycled feedstock,"
				  "Recycled Resource Extraction Project" and "Soil amendments," subsection
				  relettering and amendment of definition of "Qualified Property" filed 8-9-2016
				  as a deemed emergency pursuant to Public Resources Code section
				  26009;
				  operative 8-9-2016 (Register 2016, No. 33). A Certificate of Compliance must be
				  transmitted to OAL by 2-6-2017 or emergency language will be repealed by
				  operation of law on the following day.
10. New definitions of
				  "Biofuel," "Competitive Criteria," "Corporate Headquarters," "Recycled
				  feedstock," "Recycled Resource Extraction Project" and "Soil amendments,"
				  subsection relettering and amendment of definition of "Qualified Property"
				  refiled 2-7-2017 as a deemed emergency pursuant to Public Resources Code
				  section
				  26009;
				  operative 2-7-2017 (Register 2017, No. 6). A Certificate of Compliance must be
				  transmitted to OAL by 5-8-2017 or emergency language will be repealed by
				  operation of law on the following day.
11. New definitions of
				  "Biofuel," "Competitive Criteria," "Corporate Headquarters," "Recycled
				  feedstock," "Recycled Resource Extraction Project" and "Soil amendments,"
				  subsection relettering and amendment of definition of "Qualified Property"
				  refiled 5-4-2017 as a deemed emergency pursuant to Public Resources Code
				  section
				  26009;
				  operative 5-9-2017 (Register 2017, No. 18). A Certificate of Compliance must be
				  transmitted to OAL by 8-7-2017 or emergency language will be repealed by
				  operation of law on the following day.
12. Reinstatement of section
				  as it existed prior to 8-9-2016 emergency amendment by operation of Government
				  Code section
				  11346.1(f)
				  (Register 2017, No. 36).
13. New subsections (i), (k), (l), (z),
				  (aa) and (ac), subsection relettering and amendment of newly designated
				  subsections (p) and (x) filed 10-31-2017; operative 10-31-2017 pursuant to
				  Government Code section
				  11343.4(b)(3)
				  (Register 2017, No. 44).
14. Amendment of subsections (a), (p) and
				  (v)-(w) filed 12-16-2019 as a deemed emergency pursuant to Public Resources
				  Code section
				  26009;
				  operative 12-16-2019 (Register 2019, No. 51). A Certificate of Compliance must
				  be transmitted to OAL by 6-15-2020 or emergency language will be repealed by
				  operation of law on the following day.
15. Emergency filed
				  12-16-2019 extended 60 days (Executive Order N-40-20). A Certificate of
				  Compliance must be transmitted to OAL by 8-14-2020 or emergency language will
				  be repealed by operation of law on the following day.
16. Emergency
				  filed 12-16-2019 extended an additional 60 days (Executive Order N-66-20). A
				  Certificate of Compliance must be transmitted to OAL by 10-14-2020 or emergency
				  language will be repealed by operation of law on the following
				  day.
17. Reinstatement of section as it existed prior to 12-16-2019
				  emergency amendment by operation of Government Code section
				  11346.1(f)
				  (Register 2020, No. 43).
18. Amendment of subsections (a), (k), (p),
				  (v) and (w) filed 11-4-2020 as a deemed emergency pursuant to Public Resources
				  Code section
				  26009;
				  operative 11-4-2020. Emergency expiration extended 60 days (Executive Order
				  N-40-20) plus an additional 60 days (Executive Order N-66-20) (Register 2020,
				  No. 45). A Certificate of Compliance must be transmitted to OAL by 8-31-2021 or
				  emergency language will be repealed by operation of law on the following
				  day.
19. Amendment of subsections (a), (p), (v) and (w) refiled
				  8-30-2021 as a deemed emergency pursuant to Public Resources Code section
				  26009;
				  operative 9-1-2021 (Register 2021, No. 36). A Certificate of Compliance must be
				  transmitted to OAL by 11-30-2021 or emergency language will be repealed by
				  operation of law on the following day.
20. Amendment of subsections
				  (a), (p), (v) and (w) refiled 11-29-2021 as a deemed emergency pursuant to
				  Public Resources Code section
				  26009;
				  operative 12-1-2021 (Register 2021, No. 49). A Certificate of Compliance must
				  be transmitted to OAL by 3-1-2022 or emergency language will be repealed by
				  operation of law on the following day.
21. New subsections (ac) and
				  (ae), subsection relettering and amendment of NOTE filed 12-9-2021 as a deemed
				  emergency pursuant to Public Resources Code section
				  26009;
				  operative 12-9-2021 (Register 2021, No. 50). A Certificate of Compliance must
				  be transmitted to OAL by 6-7-2022 or emergency language will be repealed by
				  operation of law on the following day.
22. Certificate of Compliance
				  as to 11-29-2021 order transmitted to OAL and filed 4-7-2022 (Register 2022,
				  No. 14).
Note: Authority cited: Section
					 26009,
					 Public Resources Code; and Section
					 26011.8,
					 Public Resources Code. Reference: Section
					 26011.8,
					 Public Resources Code; and Section
					 6010.8,
					 Revenue and Taxation Code.