Senate Standing Committee on Revenue and Taxation

The Committee on Tax Revenue and Taxation will begin. In 30 seconds. The Committee on Tax Revenue and Taxation will come to order. We are currently in room 1200 in the O Street building where we will have three bills today considered.

Later today, the Committee of Revenue and Taxation will convene for a joint oversight hearing with the Senate Budget Subcommitee 4 upon adjournment of Senate Education in Room 2100 of the O Street Building. So that's what's coming up today. We're going to consider three bills. SB I guess we need to establish a quorum. We would the secretary please call a roll.

[Roll Call]

We have a quorum. We will now be ready to hear from authors SB296, Archuleta, SB302, Padilla and SB86. McNerney. Senator Archuleta is present. Present. So, Senator, when you're ready, please prepare and present your Bill, SB296.

I had to greet a veteran that is with us today and give him the honor and distinction of being recognized for his service. As I know that Senator Umberg would appreciate that when we have a veteran in the House, we we give them all the courtesy we possibly can.

And so I apologize for the couple of minutes, but I'm excited to present this Bill. And this Bill obviously pertains to our veterans who have served our country and in some cases have given almost everything they've got. Some mentally and physically have returned from battle.

If they were fortunate enough to begin a career and able to save and start their families, maybe they were able to buy a home. And if they were able to do that, so many have realized that the State of California is a beautiful state.

We love our veterans, but they just weren't getting the love that other states have given. And so some have left and all of us and the Assembly and the Senate and of course, all of us. So, Senator, I wanted to point right at you and thank you for your service and in helping our veterans.

And I know that when you were trying to come up here to Sacramento, that was the flag that you were covering and holding, rather, and honoring our veterans. And I appreciate that. So a lot of us who are in our positions is because we made a pledge to our veterans, to support them and help them.

And we find that one of the things that we realize now that if there's a veteran who is fortunate enough to own a home, he's paying of course, the property taxes. But not every veteran is that fortunate as we know. We have veterans who are homeless, we have veterans that are struggling.

We have veterans who have a family and they've raised them, but never have actually owned a home. And we have veterans who have 100% disability and they weren't able to buy a home. But those that are fortunate enough, this is what this is about, this Bill for our 100% disabled veterans.

So I thank you Mr. Chair and Committee Members for allowing me to present my Bill. Senate Bill 296. 296. It seeks to provide additional helping hand to our veterans, our homeowners who have 100% disability. And that rating is not easy to come by because of the mental, physical trauma and injuries they have to prove to the VA.

And with the VA support that is granted, veterans, like all other Californians are struggling for high cost of living. Housing affordability remains a significant concern for veterans. With nearly 35% of veterans paying more than 30% of their income, whatever that might be. Nine out of ten Californians consider housing affordability a problem.

Nearly one in three Californians are considering leaving the state because of it, According to the 2021 survey by the Public Policy Institute of California. We want to keep our veterans here and this is a great way to do it.

And later we'll come up with a Bill, God willing, that will take care of the veterans that are retired and handle their pensions so they'll stay here.

With many veterans throughout the state living on a fixed income and the median price of homes exceeding over $800,000, California must do more to ensure that our veterans can afford to live in this great state while striving to end veterans lack of housing. And that's so important.

Senate Bill 296 expands the disabled veterans exemption to allow full property tax exemption for 100% disabled veterans. That rating must be proven by the VA documented before that exemption will be given. There are several states that waive property tax for the disabled veterans, the 100%.

And that includes Florida, Texas, Virginia, New Mexico, Hawaii and God willing, now California with your vote and your support. This disabled veterans exemption honors their bravery, their commitment to our nation while also assisting our disabled veterans who are struggling with the high cost of living.

And here in California, as we look to the future, we must continue to ensure that we utilize every tool in our discretion to help these veterans stay in their homes and purchase their homes and those who are disabled to one day be able to receive this benefit. So with me today to testify in support of the Bill, I have a retired army veteran, Ken Shoemake. And if I may, bring him up. And where's my veteran? Front and center.

Your witness may approach the microphone. You may approach the. You may sit in the well if that's preferred.

Oh, this is. This is fine. Thank you, sir. Good morning. My name is Kenny Shoemake. I'm 100% rated service disabled veteran, having become profoundly deaf while serving with a 3rd Infantry Division during the Vietnam era.

As you would expect, it's very difficult for most 100% service disabled veterans to attend a meeting like this with the travel required and so forth. So I'm here to speak on their behalf.

I want to thank Senator Archuleta and his staff and the Members of the California Legislature that voted unanimously in last year's session for this important legislation that benefits the service disabled veterans living in our State of California. I know something about how our state honors our veterans.

I previously served as the President of The Disabled Veteran Business Alliance, our statewide organization that helped veteran entrepreneurs and empowered them with their businesses. From that unique advantage point, I saw firsthand how California honors our veterans. It's really from that vantage point, I saw where California really is the gold standard for veteran benefits and set the bar for the rest of the nation.

No other state yet matches us. Thank you for your respective role in California's nationwide recognition as the gold standard. I want to close by discussing how my wife and I will hopefully personally benefit from this legislation. My wife has Parkinson's disease.

So as a result of that, we had to sell our home in Cameron Park and move to Sacramento where she could be more mobile down here. But because of some issues, we weren't able to take advantage of our tax basis as you can transfer it to your new home.

So this legislation will be even better than the benefit we lost as we downsize and reenter the housing market. Plus, if I should die, my wife, the way Senator Archuleta has written the legislation, my wife would continue to receive that benefit. So thank you for allowing me to provide my testimony.

Well, thank you for your service and thank you for coming to testify to the Committee this morning. Appreciate it. Any other witnesses?

No, sir.

Others in support, please approach the microphone.

Thank you very much, Mr. Chair. And to Senator Archuleta, thank you very much for drafting this Bill. Joaquin Torres, the assessor recorder in San Francisco county, speaking on behalf of the California Assessors Association to voice our strong support of Senator Archuleta's Senate Bill 296 and thank you for the opportunity to speak.

We want to thank you for the continued leadership in ensuring the fair and effective Administration of our state's tax policies. As as assessors and administrators of the Revenue and Taxation Code, we appreciate any and all efforts towards clear, consistent and practical guidance for implementation that's crucial for ensuring compliance preventing confusion for both taxpayers and also the state.

As always, we're committed to partnering with you, your offices to offer insights and expertise as we move forward with any tax assessment improvements. And working together, we can ensure that the state's tax policies are fair, accurate and efficient.

And I have the esteemed assessor from San Diego County to also voice his support in the particulars that his constituency faces in light of this Bill. Thank you.

Good morning, Chair McNerney, Members of the Senate Revenue and Taxation Committee. My name is Jordan Marks and I am the elected Assessor Recorder County Clerk for San Diego, county, the fifth largest assessor jurisdiction in the United States. But more proudly, we're the number one assessor jurisdiction in the State of California for administering this veteran's benefit.

Having qualified over 18,500 disabled veteran homeowners and their families for the disabled veterans property tax exemption, it's my honor to express strong support for Senate Bill 296, a bill that would give 100% property tax exemption for 100% disabled veteran homeowners and their unmarried surviving spouses, as well as simplifying and streamlining the property tax Administration of this benefit.

I'm proud to be a voice for over 60,000 California disabled veterans and their families that deserve this expanded benefit. To be rated a 100% disabled veteran, a veteran must have lost a limb, lost an eye, and in many cases made the ultimate sacrifice and lost their lives serving our country. Yes, these are our Gold Star families.

The current property tax exemption only saves our disabled veterans about $1,500 a year off their property taxes. And it doesn't go far enough, especially when you consider the average San Diego veteran when buying a home, will pay over $10,000 in property taxes.

I've been on the front lines sitting across the kitchen tables from our disabled veterans and their unmarried surviving spouses who are facing losing their homes due to unaffordable property taxes. We must expand this benefit to ensure we protect homeownership for our heroes.

Please vote yes on Senate Bill 296 and thank you for delivering our 100% disabled veterans 100% relief from unaffordable property taxes so our veterans and their families can live and thrive with dignity in the State of California.

Good morning, Mr. Chair and Members. Amy Garrett, on behalf of the California Association of Realtors, in strong support of this measure providing some property tax relief for our veterans who have sacrificed to the point of 100% disability, particularly in this environment of ever increasing homeowners costs and burden. Thank you.

Is there anyone interested in speaking in opposition of the measure? With that, I will now turn to questions and comments from Members of the Committee. The Vice Chair is recognized.

Thank you, Senator Archuleta, for bringing this bill forward. Our 100% disabled veterans gave everything for us and they stood with us. And it's time that we stand with them, which is why I'm in strong support of this. Thank you for bringing it forward.

And I also want to thank Senator Archuleta for your bringing this bill forward. It's important. I have veterans on both my side of the family. My wife's father was a World War II veteran in Asia and also in Korea. My son is a veteran. This is important.

Veterans should get some relief from the expensive cost of living here in California. And I think this is a good first step. So I thank the author and I am in support of this bill. And I urge you. And Aye vote. Would Senator Archuleta like to close?

Well, thank you, Members of the Committee. I sincerely appreciate your love of God and country and obviously your love of veterans. And for the veterans that are in the room and those who. The veteran who testified. Thank you. And I think most of us have family Members and friends.

And as Senator Umberg has his own wife, who gave a lifetime of service as retired General. And imagine the years that they've sacrificed the Umberg family. And of course, to Senator Umberg, thank you for your service. And he wears his paratrooper wings as I wear my paratrooper wings. And I serve with the 82nd Airborne.

So on behalf of the men and women who served our country and are disabled and those who may not be, they're looking to see what California is doing for our veterans. And this is the first step, monumental step. We're making history today. And I thank you all. And I respectfully ask for your Aye vote.

Do we hear a motion?

Move. Move the bill.

The bill is moved. Secretary, please call. The roll.

Motion is do passed to the Committee on Military and Veterans Affairs. [Roll Call]

The roll is 40. The motion passes. The measure is now on call. Very good. Thank you. Next up, we have Senator Padilla with SB302. Senator, you're. You have the floor.

Good morning, Mr. Chairman and Members. I'm pleased to present SB 302, which is a conformity bill. I want to begin by accepting the Committee's amendments and thank the Committee staff for working with my office on this matter. The development of affordable clean energy products in California is critical when mitigating rising energy costs for ratepayers.

The 2022 Federal Inflation Reduction Act, or the IRA, contains several clean energy investment incentives. Two of these key provisions of the IRA provide additional mechanisms for eligible taxpayers to monetize certain clean energy tax credits. California's tax code has not been updated to reflect that, making it impossible to fully take advantage of these federal incentives.

Specifically, taxpayers here in California who sell CETC may be required to include the sale of the credits and the gross income Franchise Tax purposes, negating the value of the credit. Without the ability to fully utilize these incentives, clean energy projects in California will cost more to build, leading to higher ratepayer costs.

SB 302 would bring the California tax code in conformity with these provisions, the IRA, that allow for renewable energy credits to be transferred and monetized California businesses will be allowed to utilize the incentives laid out in the IRA.

It will help increase clean energy, incentivize clean energy investment and development, advancing our clean energy goals and promoting and impacting affordability to ratepayers. With me here today to testify is Alex Jackson with the American Clean Power Association.

Thank you Mr. Chair and Members. Alex Jackson with the American Clean Power Association. Pleased to be here. We are a trade association representing clean energy developers across a range of technologies including solar, wind storage and geothermal thermal.

Our members are responsible for delivering the 7-8 GW of nuclear capacity the state needs to bring online every year to meet its goals. That is already an immense task. But we are here in support of SB 302 because without this Bill it will be even more challenging and more expensive.

Senator Padilla outlined at a high level this Bill would eliminate attacks on the sale of federal tax credits that are used to finance clean energy projects in California. That tax is preventing developers from fully utilizing that benefit to bring down project costs, save ratepayers money and to help address California's affordability challenges.

To put some numbers behind that, we recently commissioned an analysis from the consultancy E3, and they looked at conformity versus non conformity. And they found by 2040, conformity would reduce residential rates for the customers of the investor owned utilities by up to 3%, about $50 a year.

Now as you all know, in this affordability challenge, every dollar counts. I want to emphasize three points. First, this Bill is about federal tax credits, not state tax credits. And that federal legislation was squarely designed to accelerate the deployment of clean energy, not boost state coffers.

So relative to a baseline of pre-IRA, the state is budget neutral; from our perspective, they were not counting on this income, conformity would return us to that status quo. Second, California is very much an outlier. We are one of only five states that has not conformed to the IRA.

And as we are increasingly competing with states around the west for investment and projects to accelerate our clean energy transition, the longer we don't conform, the more we are at a competitive disadvantage. And lastly, this really is an affordability Bill.

As you all know, we are looking to take stuff out of rates given the challenges that's putting on our ratepayers. Nonconformity does the opposite. It is putting additional strain on our ratepayers at a time when we could least afford it. So for that, we would respectfully ask for an aye vote.

I thank the witness. Any other witnesses in support? Please state your name, organization and your support.

Cara Martinson on behalf of the Large-scale Solar Association, in support.

Kelli L’Heureux with Resilient Advocacy on behalf of the California Chamber of Commerce in support.

Rachel McMahon with EDF Renewable Energy in strong support.

Ellen Brittingham with San Diego Community Power in support.

McKinley Thompson-Morley with Seaside Advocacy on behalf of the Solar Energy Industries Association Association and EDP Renewables in strong support. Thank you.

Good morning. Delilah Clay on behalf of the Independent Energy Producers Association, in support.

Melissa Cortez on behalf of the California Wind Energy Association in support.

Mr. Chair and Members, Mike West on behalf of the State Building Trades in support.

Good morning, Mr. Chair and Senators. Jason Bryan on behalf of Wellhead Electric, we're in support. Thank you.

Good morning, Chair and Members. Kristin Olsen-Cate of California Strategies here on behalf of Terra-Gen and Brookfield Renewables, in support.

Good morning, Chair and Members. Carlin Shelby on behalf of Avantus in support.

Good morning. Cory Bullis on behalf of Invenergy and support.

Good morning, Chair and Members. Tobias Wolken with the California Taxpayers Association, in support.

Gareth Elliott with the California Energy Storage Alliance, in support.

Good morning. Mollie Corcoran with Axiom Advisors on behalf of Fluence, in support. Thank you.

Good morning, Mr. Chairman, Members. [Speaker] representing Clearway Energy, in strong support.

Good morning. Meagan Murray with The Weideman Group, on behalf of AES and SB Energy, in strong support.

Morning, Chair and Members. Tiffany Phan on behalf of Intersect Power in support. Also on behalf of California Efficiency + Demand Management Council in support. Thank you.

Good morning, Chair and Members. Jennifer Chamberlin on behalf of ENGIE North America, in strong support. Thank you.

Good morning. Kris Rosa on behalf of Silicon Valley Leadership Group, in support.

Any opposition to speak against the Bill? Well, now we turn to questions and comments from the Committee Members. Senator Grayson recognized.

Thank you, Mr. Chair. And after so much support and the excellent testimony from your witness, what more could I say outside, of the fact that I'm compelled as a Senator to make comment?

It is so refreshing to see a policy come forward that is incentive-driven and that creates parity with pretty much all the other states. And with that I express my strong support and will move when it's appropriate.

Vice Chair is recognized.

Thank you. Californians gave us a really clear directive this past year. They--it's too expensive to live here. It's too expensive to do business here. And this is a very common sense piece of legislation and solution that I'd love to join as a co-author if you'll have me. We need more bills like this. Thank you for bringing it forward.

Thank you, Senator.

This is an important Bill that not only advances renewable energy development in the state, but also provides consistency and conformity between the state and federal tax laws. I'm happy to support the Bill today to increase investment in renewable energy in California and reduce compliance burdens for companies that using federal renewable energy tax credits. Do I hear a motion? So, moved.

Thank you, Mr. Chairman. I respectfully ask for an aye vote.

I like that kind of closing. Will the Secretary take the roll?

The motion is due pass as amended to the Committee on Appropriations. [Roll Call] 5-0.

Thank you, Secretary. 5-0. The Bill is out.

Thank you, Mr. Chairman and Members.

Next we have a Bill from Senator McNerney. I don't know who that is, but he's going to make a good show of it. And I will now turn the gavel over to the Vice Chair while I present the Bill.

Thank you. We are now moving to File item number three, SB 86 by Senator McNerney. Senator, you are welcome to begin when you're ready.

I thank the Vice Chair and Members of the Committee. First of all, what I want to do is tell everybody what CAEATFA stands for. CATFA is the California Alternative Energy Advanced Transportation Financing Authority. So you can see why we call it CAEAFTA. This Bill will extend and expand CAEATFA sales tax and tax use exclusion program.

The program provides tax exemptions to companies that California work in renewable energy, advanced transportation and advanced manufacturing. It's unfortunate that this very successful program is going to expire at the end of this year. It has created a number of Companies, I think $11 billion in tax revenue for the State of California.

SB 86, which I'm presenting today, will and definitely reauthorize the program, increase the amount of funding from 300 million to 300 million from 100 million to meet current demand of the program and expand the program to include my favorite, fusion energy cutting edge technology with potential to reduce, to produce unlimited amounts of clean energy.

CAEATFA's program is one of the few incentive programs in California that encourages clean energy manufacturing in the state. SB86 is essential for ensuring that California is not just a hub for clean energy research and innovation, but also a hub for clean energy manufacturing and quality job creation. CAEATFA grants require net benefits to move forward and be approved.

I think that's a crucial element. Not many programs in California do that and so that's a strong element in favor of this. With us today, we have to testify as Deputy Treasurer Khaim Morton and CEO of Sparkz, Sanjiv Malhotra. I'm sorry about the pronunciation. Go ahead.

We'll now move to witnesses. You'll each have two minutes to present.

Awesome. Thank you very much. Thank you Senator for the introduction. Again, Khaim Morton, Deputy Treasurer representing California State Treasurer Fiona Ma in her capacity as Chair of CAEATFA. Again, the California Alternative Energy and Advanced Transportation Financing Authority. The Sales Tax and Use Exclusion Program is a tax based incentive program administered by CAEATFA that was established in 2010.

The program grants a sales and use tax exclusion for manufacturers of green technologies. This program really serves in that two purposes. First, the SC program incentivizes the production and use of technologies to help reduce greenhouse gas emissions, air, water pollution and energy consumption.

Additionally, the SC program promotes the creation of California based manufacturing jobs that will further stimulate the California economy. So far the program has incentivized over 15.4 billion in clean tech and environmental projects in California, funding over 354 projects in over 41 counties, creating and retaining over 136,000 jobs.

These projects are estimated in our net benefits test to have created over 1.8 billion in benefit to our communities and regional economies. The STE program employs an evaluation process that considers the project's location in high end unemployment areas, workforce development partnerships and regional industry clusters. Program participation through this has continued to grow and become oversubscribed each year.

With this high demand, CAEATFA has enacted changes to make the project make the program continuously competitive in terms of criteria, project caps and allotments. These changes have allowed the program to continue and prioritize the state's environmental goals and support as many businesses as possible without closing.

Without the passage of SB 86, the SC program will sunset on January 1, 2026. Allowing this program to expire would jeopardize not only the retention and creation of thousands of jobs, but also the future of economic growth throughout the regional economies in California.

It should also be noted that this program is supported by fees and not anticipated to impact the General Fund. This program serves an important economic development tool for the state and is proven to effectively marry the state's economic and environmental goals. The treasurer is proud to sponsor SB 86 with me today. Additionally, ... from our staff as well to answer any of the detailed questions. Thank you.

Good morning. I'm Sanjiv Malhotra. I'm the founder and CEO of Sparkz. We are setting up possibly the largest. Lithium ion phosphate factory. It's a kind of a lithium ion battery, here in Metro Air Park. And not only is this the largest factory or going to be the largest factory here in the United States.

But it is the first factory that's going to be manufacturing end to end. Starting with making the material, that by the way is the only factory that's going to be doing it outside of China. Making the cells and making the complete battery packs. And this factory, we'll be creating roughly about 250 high paying jobs.

We are going to be a union shop with working with UAW. And so aside from manufacturing, essentially what Sparkz brings to Sacramento and to the State of California is innovation, brings sustainability and the first of a kind workforce training center here in Metro Air Park.

And all this is possible because of this program, the CAEATFA sales and tax exclusion. I started the company in Knoxville in Tennessee, a small state that entices everyone to go there for manufacturing. But the CAEATFA program enticed me to come to California. And with the program, with a great program like CAEATFA not only are we going to be able to do manufacturing here, we are going. To be able to scale up here. And create this high paying job.

So my humble request as the CEO of a company that is scaling up here in Sacramento is that I would really request you all to vote in favor of this program because this is very essential for creating manufacturing in the United States, creating manufacturing in California and creating these jobs. Thank you.

Thank you. We'll now move to any other. Anyone else in the room in support, please state your name, your organization and your position. Thank you.

Good morning Madam Chair and Members. Martin Vindiola on behalf of the California State Association of Electrical Workers, the California State Pipe Trades Council and the Western States Council of Sheet Metal Workers in support. Thank you.

Hello chair and Members, My name is Krystal Raynes, on behalf of Californians Against Waste. We weren't able to submit our letter in time to be on the official analysis, but we are in strong support of the Bill. Thank you.

Good morning. Kelly Larue with Resilient Advocacy, on behalf of The California Chamber of Commerce in support.

Good morning Madam Chair and Members, Brian White on behalf of General Atomics also in support.

Good morning. Keely Morris with Edelstein, Gilbert Robson & Smith, on behalf of the Los Angeles County Sanitation Districts in support.

Good morning Senators. Voleck Taing on behalf of the American Council of Engineering Companies of California in support.

Good morning, Madam Chair. Colton Stadtmiller with Brownstein on behalf of the Bay Area Council in support. Thank you.

Good morning chair and Members. Keshav Kumar with Lighthouse Public Affairs on behalf of Heirloom Carbon, a proud prior recipient of CAEATFA Funding in strong support.

Good morning, Mr. Chair and Members. Jasmine Vaya on behalf of Joby Aviation in support. Thank you.

Good morning, Mr. Chair and Members. Delilah Clay on behalf of Calpine in support.

Good morning Mr. Chair and Members. Amy Jenkins on behalf of the Oceantic Network in strong support. Thank you.

Chris Bollinger on behalf of the California Asian Chamber of Commerce in support. Thank you.

Philip Herrera, Herrera Cal Advocacy here on behalf of my clients in life sciences and semiconductors in strong support.

Thank you. We'll now move to any witnesses that are here in opposition.

Morning chair Members. I'm Emma Jungwirth on behalf of the California State Association of Counties and the California or the League of California Cities. We don't have a formal position on this Bill but just want to raise concerns generally about legislation that reduces sales and use tax revenues for local governments.

This Bill is estimated to reduce ongoing state and local sales tax revenues by up to $300 million annually, which will result in a reduction of funding available to local governments to provide critical services to their communities. This is especially concerning giving the uncertainty around federal funding.

We have reached out to the Chair's office and we look forward to working with you as this Bill progresses. Thank you.

Any witnesses in opposition? State your name, your organization. Seeing none, will now move. Will now move to the Committee for comments. Senator Ashby.

First of all, thank you for choosing Sacramento to settle for Sparkz. I've heard a lot about your project. Prior to you getting here. There were many people who worked on recruiting to bring this project to this region.

And there are many ancillary components happening at the same time to try to assist with making sure that the workforce is here do also have the preeminent employment base that you're talking about.

I am less concerned about the hit to the taxes because bringing in a company like this will also grow our tax base substantially and it is an innovative space. We need to make sure that we support you in startup. This is what California is about, right? The Land of dreamers and innovators.

We want to continue to be that. I am very honored to serve as the Business Professions and Economic Development Chair and I call it BPED because I never want to leave out economic development. I think it's something that the State of California needs to focus on much more.

I'm very proud of the way Sacramento fights for every inch of economic development and I am going to agree to come onto this Bill if the author would be willing to allow me. I know you reached out to my team.

I'm happy to do so because you're involved and because I think that this is a good project and it is exactly what we need more of in the State of California if we want to get away from talking about taking dollars here and taking dollars there and instead grow the pie for everyone.

So happy to make the motion at the right time. Proud to come on as a co-author with you sir. And grateful to you for choosing this region.

Senator Grayson.

Thank you Madam Vice Chair. And want to thank the author for bringing this forward. Having authored AB 844 Creating the Green Empowerment Zone for green and clean energy and manufacturing. It's very programs exactly like this that drive the success of those kind of programs.

Little jealous and envy that Sacramento got you and not the Green Empowerment Zone of the East Bay. But we're all growing together and I want to share my comments along with my colleague here on the panel from Sacramento.

As far as the investment and of course an investment is putting cost up but the return, we're always looking on a greater return and no doubt especially because of the policies that are in this program, you're guaranteed a return.

So with that I fully support this and love to become a co-author as well if the author would allow.

Thank you. We had conversations about this Bill yesterday I think it's a great Bill. Because we are removing the sunset, I would like us to find an opportunity to look back and whether it's a report in a couple of years just to keep so that the Legislature can keep an eye on its effectiveness.

I would appreciate that we had conversations about that. I think it's a great Bill though and a Bill that we need. So I would like to give you the opportunity to close.

Thank you. And I appreciate the offer the discussion we had last night. And I will work with your office to find a way to make sure that the reporting is adequate to satisfy your requirements. You know, California is the home of renewable energy development.

In 1985 I took a position with a company called US Wind Power based here in Livermore, we created the wind energy technology that now is dominating the world. And unfortunately, because of lack of incentives and incentives in other locations, that technology went to other states and other countries.

So this program, I think, will help continue to keep California in the forefront of renewable energy development. It's oversubscribed at $100 million a year. We need more capacity to take in companies. And since the program has been in effect for years, it isn't going to reduce revenue to local jurisdictions. So I think we can move forward.

If there's some additional work we need to do with local jurisdictions, we'll be glad to consider what's being offered. With that, I respectfully ask for an aye vote.

We have a motion from Senator Ashby to move the Bill. Secretary, please call the roll.

Motion is do pass to the Committee on appropriations. Senators McNerney?

Aye.

McNerney, Aye. Valladares? Valladares, aye. Ashby? Ashby, aye. Grayson? Grayson, aye. Umberg?

The vote is 4-0. We will leave that on call.

The chair lifts. Call on item number one, SB 296. Please call a roll on that.

[Roll Call]

The Bill is out. Close the roll. Okay then. The Committee is now in recess waiting for to close the roll on two other Bill. The Committee is now in order. We'll now lift the call on item three. SB86. Please call a roll.

[Roll Call]

50. The Bill is out. The Committee is now adjourned.