CA Legislature Greenlights McNerney’s Bill to Continue Clean Energy Funding
The California Legislature has given the greenlight to Senator Jerry McNerney’s SB 86, legislation that would extend a successful clean energy funding program that helps the state meet its climate goals. The program provides tax incentives to California manufacturers of green technologies and environmentally friendly projects.
SB 86 would extend the program until 2028 and expand it to include fusion energy, a cutting-edge technology that has the potential to produce unlimited amounts of clean power.
“With the Trump Administration dramatically slashing clean energy funding, it’s imperative for California to extend one it’s most successful green energy jobs programs,” said Sen. McNerney, D-Pleasanton, who is chair of the Senate Revenue and Taxation Committee. “SB 86 will ensure that California continues to incentivize green energy projects, and will help California become a national leader in fusion energy, a potential game-changing clean technology.”
SB 86 won unanimous approval today in the Senate after passing the state Assembly on a 76-0 vote. SB 86 now goes to the governor’s desk for consideration. The legislation is sponsored by California State Treasurer Fiona Ma.
SB 86 would extend and expand the California Alternative Energy and Advanced Transportation Financing Authority’s (CAEATFA) Sales and Use Tax Exclusion (STE) Program. Treasurer Ma serves as chair of the CAEAFTA authority.
“As State Treasurer, I am proud that CAEATFA’s sales tax exclusion program is a major driver of green innovation and technology in California,” said Treasurer Ma. “By helping us attract and retain cutting-edge manufacturers in critical industries, it enables the creation of high-paying jobs, boosts the economy, and helps California reach its renewable energy goals. This bill continues the program and expands eligible uses. I’m proud to sponsor SB 86.”
The California Legislature established CAEATFA in 2010. Since then, the program has incentivized $11 billion in clean tech and environmental projects in California, funding 256 projects in over 40 counties and creating or retaining 115,000 jobs.
The program funds renewable energy sources, energy efficiency, and advanced transportation and manufacturing technologies to reduce air pollution, conserve energy, and promote economic development and jobs. However, the program is set to expire on Jan. 1.
SB 86 would extend the program for two years and provide tax incentives for fusion energy technology for the first time. Lawrence Livermore National Laboratory, located in Sen. McNerney’s district, has also been on the leading edge of fusion tech.
Sen. Jerry McNerney is chair of the Senate Revenue and Taxation Committee and his 5th Senate District includes all of San Joaquin County and Alameda County’s Tri-Valley.
