In the wake of the Solyndra bankruptcy, State Treasurer Bill Lockyer is pushing to suspend the sales-tax exemption for renewable-energy manufacturing equipment. “The Treasurer desires to pause it to review the application process and make it better,” Lockyer spokesperson Joe De Anda said. Lockyer raised a potential suspension before the Treasurer’s California Energy & Advanced Transportation Financing Authority last week. The panel voiced preliminary support for the temporary halt and said it plans to vote on the matter Oct. 25. The sales tax exemption for equipment used in manufacturing renewable energy generation systems was authorized two years ago with SB 71 by Sen. Alex Padilla (D-Pacoima). It aimed to draw renewable energy business to the state. The reduction in sales tax collections under the exemption was expected to be offset by corporate and income tax revenue. The law gave the Authority the power to grant exemptions to specific manufacturers of renewable energy systems for specified dollar amounts upon application. Before the Financing Authority acts, lawmakers plan to weigh in. “In California we remain committed to renewable energy,” said Assemblymember Steven Bradford (D-Gardena), Assembly Utilities & Commerce Committee chair. The temporary halt of the exemption is the subject of an Oct. 11 hearing by the Senate Energy, Utilities, & Commerce Committee, which Padilla chairs. A “pause” in the program would affect only new applicants. There are currently no new applications from companies seeking the sales tax exemption and thus no financial impact is anticipated, according to DeAnda. Some large renewable equipment manufacturers told Current the sales tax would have little impact because few firms would locate in California anyway because of the “high costs.” Those costs include, they said, state and local tax rates, which are higher than in many other states. The now-bankrupt solar manufacturer Solyndra received $25 million in state sales tax exemptions, according to the Treasurer’s office. It had approval for up to $34.7 million in sales tax exemptions for equipment bought to manufacture solar panels, but went bust before it could fully use the tax advantage. To date, there have been $104,074 million in equipment sales tax exemptions for renewable equipment, according to a September report by the Treasurer. That is based on $1.6 billion worth of purchases of equipment to make wind turbine blades, solar panels or other parts of renewable facilities.