California Ethanol & Power granted sales and use tax extension

By California Ethanol & Power LLC | December 05, 2019

A California-based sugarcane ethanol renewable energy company was recently granted by unanimous vote a four-year extension for a sales and use tax exclusion (STE) by the Board of the California Alternative Energy and Advanced Transportation Financing Authority. The board is composed of the state controller, director of finance, chair of the Energy Commission, and president of the Public Utilities Commission and lead by the state treasurer.

In 2013, California Ethanol & Power, LLC (CE+P) was first awarded a sales and tax exclusion of $37.23 million for the purchase of up to $444.81 million in qualified property to construct a facility that converts sugarcane into low-carbon, fuel-grade ethanol, bio-methane, and electricity. “CE+P is pleased to have been awarded the second-largest amount out of 222 awardees. Since the program’s inception, waivers totaling over $825 million averaged $3.7 million each, making CE+P’s award roughly ten times the average granted,” stated President and CEO Dave Rubenstein.

CAEATFA’s STE program strives to further the State of California’s mission to encourage the development of alternative energy and advanced transportation. The program incentivizes manufacturers to stimulate the economy with the creation of high-paying jobs.  CE+P intends to generate a stable revenue stream for local growers with sugarcane as an alternative and sustainable crop, create an estimated 300 permanent green and technical jobs, and spur ancillary growth and economic opportunity in Imperial Valley, California.

In 2016, the CAEATFA board approved a three-year extension of the initial term of the agreement concluding that an extension was in the public’s interest and advanced the purpose of the STE program. “On Nov. 19 of this year, CE+P requested and was approved for a four-year extension to accommodate our intense efforts to finalize an engineer, procurement and construction (EPC) price for our facility and to finalize the financing for our first Project,” stated Rubenstein.

CE+P has had considerable support, including the California Governor's Office of Business and Economic Development (GO-Biz), which granted the company a $10 million income tax credit in 2019, one of their most significant awards. The program is designed to encourage the expansion of businesses and to create jobs in California. CE+P has also received a $2.5 million grant from the Imperial Irrigation District, and a $750,000 low-interest loan from Imperial County. The CAEATFA sales and use tax extension will help CE+P accelerate reaching financial close and a much anticipated ground-breaking,” stated Rubenstein.