Newsom Signs McNerney’s Bill to Boost CA’s Clean Energy Economy
Gov. Gavin Newsom today signed Sen. Jerry McNerney’s SB 86, which will extend a successful clean energy funding program that helps the state meet its climate goals and boosts California’s green economy.
The program creates clean energy jobs by providing tax incentives to green energy manufacturers.
SB 86 extends the tax incentive program until 2028 and expands it to include fusion energy, a cutting-edge technology that has the potential to produce unlimited amounts of safe, clean power.
“The Trump Administration is eliminating clean energy funding nationwide. With SB 86, California will maintain its lead in the fight against climate change by continuing to incentivize green energy projects and solidify its position as a national trendsetter in fusion energy, which has the potential to supply the nation with unlimited amounts of safe and clean power,” said Sen. McNerney, D-Pleasanton, who is chair of the Senate Revenue and Taxation Committee.
SB 86, which won unanimous support in the Legislature, will take effect Jan 1. The legislation was sponsored by California State Treasurer Fiona Ma.
SB 86 will 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 extends the program, expands it eligible uses and continues to allow California access to another tool for economic and community growth. 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 was set to expire on Jan. 1.
SB 86 extends 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 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
