Senate Greenlights McNerney’s Bill to Expand Clean Energy Funding

The California Senate on Wednesday gave the greenlight to Senator Jerry McNerney’s SB 86, legislation that would extend and expand a pivotal 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 double the amount of funds available in the program, from $100 million to $200 million, and would extend the program until 2031. SB 86 would also expand the tax incentive program to include nuclear fusion, a cutting-edge technology that has the potential to produce unlimited amounts of clean energy.

“With the Trump Administration dramatically slashing clean energy funding, it’s imperative that California continue its leadership role in the fight against climate change,” 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 projects, while also boosting the state’s clean energy sector. Plus, the bill will help California become a national leader in fusion energy, a potential game-changing clean technology.”

SB 86 won unanimous approval in the Senate on a vote of 39-0. The bill now goes to the state Assembly for consideration.

SB 86 would extend and expand the California Alternative Energy and Advanced Transportation Financing Authority’s (CAEATFA) Sales and Use Tax Exclusion (STE) Program. California State Treasurer Fiona Ma, who serves as chair of the CAEAFTA authority, is sponsoring 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, which funds renewable energy sources, energy efficiency, and advanced transportation and manufacturing technologies to reduce air pollution, conserve energy, and promote economic development and jobs, is also oversubscribed.

SB 86 would also provide tax incentives for nuclear 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.