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California Alternative Energy and Advanced Transportation Financing Authority

Sales Tax Exclusion (STE) Proposed Regulations/Current Regulatory Actions

Sales Tax Exclusion (STE) Proposed Regulations/Current Regulatory Actions

Current STE Program Regulations (as of April 6, 2026)

Regular Rulemaking (as of August 27, 2026)

CAEATFA will issue a Notice of Proposed Rulemaking with proposed regulation text for the regular rulemaking process for the STE Program. The Notice will be published in the California Regulatory Notice Register on August 28, 2026.

These regulations will complete the rulemaking process initiated by the emergency regulations adopted on April 6, 2026. This regular rulemaking will make permanent the amendments from the emergency rulemaking action. The public comment period for the Notice of Proposed Rulemaking will end on October 12, 2026.

Stakeholders and interested parties can submit written comments to steprogram@treasurer.ca.gov.

If you prefer to receive a hard copy of the Notice or proposed regulations or if you have any questions regarding this action, please contact Christopher Castrillo at (916) 653-0012.

Emergency Rulemaking (as of March 18, 2026)

On Friday, January 30, 2026, at 10:00 AM, CAEATFA will be discussing proposed amendments to the Sales and Use Tax Exclusion Program’s regulations at a public workshop. The public workshop will be held remotely via Microsoft Teams.

The proposed amendments will address the statutory requirements of SB 86 (McNerney, Chapter 211, Statutes of 2025), policy and compliance adjustments, and opportunities to streamline program administration while introducing greater flexibility to meet program needs. CAEATFA staff will also address additional changes, including fee-related adjustments aimed at improving program efficiency and effectiveness.  

Public comment deadline for the workshop was 5:00 PM on Friday, February 6, 2026.

Currently available publications are hyperlinked. Archived publications are available upon request.  Please include in your email request the name of the document, document time period (if applicable), and name of the program that the document is referenced under.  If an ADA remediated version of the PDF document is needed, please specify in your request. Please send your request to: caeatfa@treasurer.ca.gov.