Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
275.0000 GAS, ELECTRICITY AND WATER
(c) COGENERATION TECHNOLOGY
275.0500 Cogeneration Technology. The exemption in section 6353 of the Sales and Use Tax Law was expanded to include ". . . exhaust steam, waste steam, heat, or resultant energy, produced in connection with cogeneration technology, as defined in section 25134 of the Public Resources Code."
In 1981, the Legislature rewrote section 25134, repealing the definition of "cogeneration technology", and replacing it with a definition of "cogeneration."
The rule of statutory construction applicable here is that a statute (Sec. 6353) which adopts by reference another statute (Sec. 25134) is unaffected by amendment or repeal of the latter statute (Sec. 25134) in the absence of express or implied legislative intent to the contrary. There was no express or implied legislative intent to the contrary in the 1981 amendment (Stats. 1981 Ch. 952 Sec. 5).
Therefore, in interpreting section 6353, the Board staff will use the following definition of "cogeneration technology" from section 25134 as originally enacted; no effect will be given to the 1981 amendment.
"Cogeneration technology" means the use for the generation of electricity of exhaust steam, waste steam, heat, or resultant energy from an industrial, commercial, or manufacturing plant or process, or the use of exhaust steam, waste steam, or heat from a thermal powerplant for an industrial, commercial, or manufacturing plant or process. For purposes of this division, the industrial, commercial, or manufacturing plant or process shall not be considered a thermal powerplant or portion thereof. Cogeneration technology shall not include steam or heat developed solely for electrical power generation. 12/29/83.