§ 10032. Application Requirements.

(a) Timing of Application submissions.

(1) Except as otherwise provided by the Authority pursuant to subparagraph (3) below, Applications may be submitted for consideration at any time. Applications will be presented at the first meeting at which Applications will be considered occurring at least 60 calendar days after the receipt of the Complete Application, except as noted in paragraphs (3), (6), and (7) below.

(2) Applications must be submitted via e-mail to [e-mail] as well as in person or via regular mail or commercial delivery service. CAEATFA must receive the original paper Application within five (5) business days of submission of the electronic version of the Application.

(3) The Authority may limit the number of meetings each year at which Applications will be considered.

(4) To the extent that total sales and use tax exclusions (STEs) awarded during the calendar year reach $100 million (the funding cap), no additional Applications will be reviewed during that calendar year. Applications that are received but not awarded due to the funding cap will be placed on a waiting list. The total value of requested sales tax exclusions for all projects on the waiting list shall not exceed $20 million. To the extent that additional STEs become available during the calendar year, Applications on the waiting list will be reviewed and presented to the CAEATFA Board for approval in the order in which they were received. Each year in November, all Applications will be removed from the waiting list. Applicants may then reapply for consideration at the Authority's subsequent January board meeting. Applicants that have previously applied will not be required to pay a second Application Fee to the extent that resubmitted Applications are substantially similar to the originally submitted Application.

(5) Complete Applications will be reviewed in the order in which they are received.

(A) The order in which they are received will be determined by the time and date stamp of the electronic submission of the Application via e-mail.

(6) Upon a recommendation of the Executive Director, the Authority may consider an Application at a meeting occurring less than 60 calendar days after the receipt of the complete Application.

(7) The Authority may, upon a finding that it is in the public interest and advances the purposes of the Program, at any time announce that it is not accepting further Applications.

(b) Application. Applicants shall submit to the Authority the information required by this section.

(1) Applications not meeting all requirements shall be considered incomplete. An Applicant shall be notified by the Authority should its Application be deemed incomplete and may correct any deficiency and resubmit the Application. Resubmitted Applications will be reviewed for completeness and, if complete, will be further reviewed by staff and presented to the Authority pursuant to the regular review and evaluation process and timeline.

(2) Determination of completeness, compliance with all requirements, and the scoring of the Application shall be based entirely on the documents contained in the Application as of the date on which the Application was submitted. Any additional documents pertaining to the requirements or scoring categories that the Applicant chooses to submit shall be accepted after the Application-filing date only with the understanding that, for purposes of calculating the 60 calendar days to determine the earliest meeting at which the Application will be heard and the date on which a complete application is deemed to have been received, the date the additional documentation is received shall be the date of receipt of the Application. In the event the Authority asks an Applicant for additional information or requests clarification or correction of errors, Applicants shall be given up to three (3) business days from the date of receipt of staff notification to submit said documents to complete the Application. A timely response shall not cause a redetermination of the date of receipt. The Authority may request additional clarifying information from third party sources, such as local government entities, other state agencies, or subject matter experts. To the extent that third party information is received that contradicts or otherwise calls into question information provided in the Application or otherwise may result in a reduction in the score that an Application would receive, the Applicant will be notified and will be given three (3) business days to respond to the third party information received.

(3) An Application may not be changed, nor may any additional information with respect to scoring be submitted subsequent to the Application filing date, except as noted above.

(4) Applications not submitted with the Application Fee will be considered incomplete, unless an Application is a resubmission pursuant to Section 10032(a)(4).

(5) To be considered complete, a paper copy of the filled-out Application and any supporting documentation, including original signatures as required on part A of the Application form, must be received at the Authority's Sacramento office.

(c) Documentation. The following documentation relevant to the proposed Facility is required to be submitted with all Applications:

(1) Applicant Certification. A signed statement certifying the responsibility of the Applicant to:

(A) provide Application-related documentation to the Authority upon request;

(B) be familiar with and comply with Program statutes and regulations;

(C) hold the Authority and its employees and consultants harmless from any and all issues arising from the Applicant's participation in the Program;

(D) agree to comply with and remain in compliance with all applicable laws and regulations during the term of the Regulatory Agreement;

(E) acknowledge that the Authority has recommended the Applicant seek tax advice;

(F) acknowledge that the Application will be evaluated according to Authority regulations;

(G) acknowledge that continued compliance with Program requirements, including ongoing reporting requirements and any costs associated with such requirements for the term of the Regulatory Agreement, is the responsibility of the Applicant;

(H) acknowledge that information submitted to the Authority may be subject to disclosure pursuant to the Public Records Act (Government Code Sections 6250, et seq.);

(I) agree to enter with the Authority into a Regulatory Agreement if the Application is approved; and,

(J) acknowledge, under penalty of perjury, that all information provided to the Authority is true and correct, and that the Applicant has an affirmative duty to notify the Authority of any material changes to the information submitted in the Application during the Application process and the term of the Regulatory Agreement.

(2) Legal Information. Applicants shall complete the Legal Status Questionnaire (as revised on October 1, 2010).

(3) Designated Contacts. The Application must identify designated contacts who can respond to questions from the Authority or provide additional information if requested. If the designated contacts are not directly employed by Applicant, the Application must include appropriate documentation signifying the contact's authority to represent and act on behalf of the Applicant with respect to the Application.

(4) Applicant and Facility Information. Applicants are responsible for providing all requested information, which shall include:

(A) Applicant Information.

(i) Name, phone number, email address, mailing address, and taxpayer identification number of Applicant,

(ii) Applicant organization type (e.g., corporation, LLC, partnership, etc.),

(iii) Name, phone number, email address, and mailing address of a primary and secondary contact person

(iv) Contacts' titles or relationships to Applicant,

(v) The name(s) of the owners of the Applicant's business entity.

a. If the Applicant is a corporation, include the names of the officers of the corporation, major shareholders (10.0% or greater), and date and place of incorporation.

b. If the Applicant is a sole proprietorship, include the name of the proprietor and the date and place of establishment.

c. If the Applicant is another type of legal entity, identify the name(s) of the owners and each owner's share of ownership (the totals of the reported shares of ownership should equal 100%).

d. For all types of business entities, other than publicly traded corporations, private equity firms or sole proprietorships, that are owned by another business entity with an ownership share greater than or equal to 10 percent, identify any individuals or businesses with an ownership share in the parent entity of 10 percent or more.

(vi) Brief description of the Applicant's business, including product(s) produced, facility locations, years in business, and any unique technological or environmental characteristics of the business or products.

(B) Facility Information

(i) Brief description of Facility and product(s) to be produced, including the following:

a. Physical location of the Facility

b. A description of the Facility, including the design, manufacturing, or assembly process to be employed, the product to be produced, and the intended or likely customers.

c. Identification of the Advanced Transportation Technology or Alternative Source product, component or system to be produced or the Advanced Manufacturing process to be utilized. In the case of a Facility producing property or products that, after further manufacture, will become the Green Component of an Advanced Transportation Technology or Alternative Source product or system, the Applicant must describe both the property or product produced by the Facility and the Green Component of the Advanced Transportation Technology or Alternative Source product or system for which the product produced will be used.

d. Current Facility status and a schedule indicating the estimated Facility construction start date through the placed-in-service date for the Qualified Property identified in the Application, including the expected date of any needed permits.

e. Description of the sources of financing necessary for Facility completion, including the provision of financial assistance from any local governments for the project.

f. Total value of the capital stock used to produce the product, including the anticipated Qualified Property purchases. The value is not the cost of the capital stock, but the depreciated value of the capital stock excluding buildings and land.

g. Projected average number of employees at the Facility, measured in full time equivalents, assuming Qualified Property is utilized.

h. Projected number of employees employed for purposes of constructing the Facility or installing Qualified Property, measured in full time equivalents.

i. Estimated annual corporate or other income taxes paid by the company on its profits.

(C) Qualified Property Information. Completed provisional Qualified Property list to include the following information for each piece of property to be subject to the sales and use tax exclusion. Good faith estimates are acceptable if specific property characteristics are not available at the time of Application. Individual items of Qualified Property valued at less than $10,000 can be grouped together provided that (a) the total value of the group of items does not exceed $100,000 and (b) the individual items are reasonably related, such as items that will be used together to produce a particular sub-component or perform a discrete function in the manufacturing process.

(i) Brief description of Qualified Property to be purchased and its use in the manufacturing, production, assembly, or design process.

(ii) Estimated cost of the Qualified Property to be purchased

(iii) Average Estimated Useful Lifespan of the Qualified Property, weighted by cost.

(iv) Estimated percent of time Qualified Property will be used to make Advanced Transportation Technologies or Alternative Source products, components, or systems or will be utilized in an Advanced Manufacturing process.

(D) Product information (all information must relate solely to the Facility or product to be produced with Qualified Property if the Applicant produces other goods or services):

(i) Brief description and name of the product to be produced with Qualified Property and within California, including the six-digit (NAICS) code.

(ii) Estimated average annual number of Qualified Products produced.

(iii) Estimated per unit sales price.

(iv) Estimated total Facility sales in dollars.

(v) Estimated per unit production-related purchases from suppliers, assuming Qualified Property is utilized or installed.

(vi) Estimated percent of production costs from California Suppliers.

(vii) Estimated per unit labor costs, assuming Qualified Property is utilized or installed.

(viii) Estimated Useful Lifespan of product, component, or system.

(ix) Estimated percent of total Qualified Products to be sold in California.

(x) Statement as to whether the technology, product, component, or system is a subcomponent of a Qualified Product or an end-of-supply-chain product.

(xi) Total value of the end-of-supply-chain Green Component.

(E) Environmental Benefit Information.

(i) For Facilities producing the Green Component of Alternative Source products, components or systems:

a. Annual energy generation capacity or energy content per unit.

b. Lbs. of CO2 (or equivalent) emitted per MWh or equivalent.

c. Lbs. of SO2 emitted per MWh or equivalent.

d. Lbs. of NOx emitted per MWh or equivalent.

e. Amount of other pollutants emitted per MWh or equivalent.

f. Pollution cost of other pollutants emitted per MWh or equivalent.

(ii) For Facilities producing the Green Component of Alternative Source energy efficiency products, components or systems

a. Type and units of energy conserved

b. Applicable Recognized Energy Efficiency Standard

c. Annual baseline system consumption of energy per unit

d. Annual improved system consumption of energy per unit

(iii) For Facilities producing the Green Component of Advanced Transportation Technology products, components, or systems

a. Annual baseline system consumption of energy per unit

b. Annual improved system consumption of energy per unit

c. Annual consumption of any offsetting energy required to achieve improved system performance

(iv) For Facilities producing the Green Component of Alternative Source or Advanced Transportation Technology products, components, or systems that do not fall within the above categories of products, the Applicant shall explain and quantify the following:

a. Description of environmental benefits.

b. Annual value of environmental benefits associated with use of the product.

c. Annual pollution cost of any off-setting energy use or other pollutants emitted.

(v) For Advanced Manufacturing Facilities:

a. Description of environmental benefits.

b. Estimated reduction in energy or water use; solid waste, hazardous waste, or air pollution emissions.

c. Description of any environmental sustainability plans.

(F) Optional Supplemental Information. The following information may be submitted with an Application. Submission of this information may increase an Applicant's score, as specified in Section 10033, however, the Authority will not use this information to adjust an Applicant's score if an Applicant's score, based on the required information listed above, exceeds the established points threshold.

(i) Applicants claiming any additional significant environmental benefits associated with use of their product beyond those associated with reduced energy consumption or increased Alternative Source energy generation may provide a description of these benefits, including the amount of pollution avoided and a quantification of the impact of the pollution reduction in dollars if possible.

(ii) Advanced Transportation or Alternative Source Applicants utilizing a manufacturing or production process that is characterized by substantial environmental improvements relative to the processes employed by directly comparable entities in energy use, water use, atmospheric emissions, waterborne waste, industrial solid waste, or post-consumer solid waste may submit the following information, submission of which may increase an Applicant's score:

a. An explanation of the process improvements

b. Demonstrated proof of input use and output emission improvements over the standard processes

c. Quantification of the amount of the process improvements

(iii) Other Facility Information

a. Applicants with facilities located in California that perform research and development functions related to the product or production process at the Facility that is the subject of the Application may submit information establishing the location of the research and development facility and the connection between the research and development and the Facility, submission of which may increase an Applicant's score.

b. Applicants that have partnerships with educational institutions either for the purpose of training the workers at the Facility or for purposes of assisting in the training of potential future workers may submit information documenting this partnership, submission of which may increase an Applicant's score.

c. Applicants in Industry Clusters as defined may submit information establishing this fact, submission of which may increase an Applicant's score.

(iv) Additional documentation only for Applicants claiming that without the exclusion the proposed Facility will not be sited in California. Determination of Facility benefits, as further delineated in Section 10033, may be increased for Facilities that would not locate production Facilities in California absent the grant of the sales and use tax exclusion. For Applicants claiming that Facility location or expansion decisions are dependent upon receipt of the sales and use tax exclusion, Applications must provide evidence to support the claim. Such evidence may include the following:

a. Internal financial analysis demonstrating the extent of an advantage for a non-California site.

b. Location consultant report demonstrating the extent of an advantage for a non-California site.

c. Other internal or external analyses demonstrating that, absent the grant of the sales and use tax exclusion, the proposed Facility will not proceed at the California site.

(G) Calculations and assumptions relied upon by the Applicant. For any calculation performed by or assumption relied upon by the Applicant in completing the Application, the Applicant must provide an explanation of the basis for the value resulting from the calculation or reasonableness of the assumption relied upon. Applicants may be asked to provide additional supporting information, including business plans, pro forma financial statements or other comparable documents used for the purpose of soliciting investors to verify responses contained in the Application. Applications that do not adequately document any calculations or assumptions relied upon will be considered incomplete.

(5) Application materials and supporting documentation in excess of thirty pages will not be considered or reviewed except to the extent that documentation in excess of this page limit is provided in response to a direct request for additional information from the Authority.

HISTORY

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 of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; filed 3-8-2012 as an emergency; operative 3-8-2012 (Register 2012, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-4-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; refiled 9-4-2012 as an emergency; operative 9-4-2012 (Register 2012, No. 36). A Certificate of Compliance must be transmitted to OAL by 12-3-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of subsections (a)(1) and (c)(4)(B)(i)e. deemed necessary for the immediate preservation of the public peace, health and safety, and general welfare by the Legislature pursuant to section 26011.8 of the Public Resources Code; refiled 12-3-2012 as an emergency; operative 12-3-2012 (Register 2012, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-4-2013 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 12-3-2012 order transmitted to OAL 2-28-2013 and filed 4-2-2013 (Register 2013, No. 14).

9. 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.

10. 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.

Note

Note: Authority cited: Section 26011.8, Public Resources Code. Reference: Section 26011.8, Public Resources Code; and Section 6010.8, Revenue and Taxation Code.