Electricity: Strategic Clean Energy and Critical Mineral Development Zones.

Plain English Breakdown

The bill summary does not provide specific details on funding allocations for projects within designated zones.

Strategic Clean Energy and Critical Mineral Development Zones

The bill requires state agencies to prioritize projects in designated zones within the County of Imperial and Lithium Valley that support clean energy production, critical mineral supply chains, advanced manufacturing, and other energy-intensive industries.

What This Bill Does

• Creates Strategic Clean Energy and Critical Mineral Development Zones in areas with high potential for renewable energy resources and critical minerals.
• Requires state agencies to give priority consideration to projects within these zones that support clean energy production and related industries.
• Allows counties to request designation of a zone, which must be approved or denied by the State Energy Resources Conservation and Development Commission within 180 days.
• Requires regular reviews and updates of designated zones based on changes in resources, infrastructure, or economic development planning.
• Authorizes coordination between state agencies to support site readiness, infrastructure development, and attracting investment within these zones.

Who It Names or Affects

• State agencies responsible for energy infrastructure, economic development, advanced manufacturing, workforce development, and critical mineral supply chains.
• Counties in the County of Imperial and Lithium Valley that can request designation of Strategic Clean Energy and Critical Mineral Development Zones.
• Businesses and industries involved in clean technology, energy storage supply chains, and other energy-intensive activities.

Terms To Know

Strategic Clean Energy and Critical Mineral Development Zones

Designated areas within the County of Imperial and Lithium Valley that have high potential for renewable energy resources and critical minerals used in clean technology industries.

State Energy Resources Conservation and Development Commission (Energy Commission)

A state agency responsible for identifying and designating Strategic Clean Energy and Critical Mineral Development Zones, among other duties related to energy matters.

Limits and Unknowns

• The bill does not specify the exact criteria or process for counties to request designation of a zone beyond requiring approval from the county board of supervisors.
• It is unclear how much funding will be allocated specifically for projects within designated zones.

Official Summary Text

AB 2163, as amended, Jeff Gonzalez.
Electricity:
County of Imperial and Lithium Valley.
Strategic Clean Energy and Critical Mineral Development Zones.
Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including electrical corporations.
Existing law, the Warren-Alquist State Energy Resources Conservation and Development Act, establishes the State Energy Resources Conservation and Development Commission (Energy Commission) and prescribes the authorities, duties, and responsibilities of the Energy Commission pertaining to energy matters.
Existing law establishes a state policy that eligible renewable energy resources and zero-carbon resources supply 90% of all retail sales of electricity to California end-use customers by December 31, 2035, 95% of all retail sales of electricity to California end-use customers by December 31, 2040, 100% of all retail sales of electricity to
California end-use customers by December 31, 2045, and 100% of electricity procured to serve all state agencies by December 31, 2035, as provided. Existing law requires the PUC, the
State Energy Resources Conservation and Development
Energy
Commission, State Air Resources Board, and all other state agencies to ensure that actions taken in furtherance of that state policy meet certain criteria.
This bill would require those state agencies to ensure that actions taken in furtherance of that state policy also consider the
energy potential and high energy capacity of the County of Imperial and Lithium Valley, including all future energy development and output in those regions.
development potential of regions within the state capable of supporting large-scale clean energy production, critical mineral supply chains, advanced manufacturing, and other energy-intensive industries, including regions designated as Strategic Clean Energy and Critical Mineral Development Zones.
This bill would require the Energy Commission, in consultation with the Governor’s Office of Business and Economic Development and other relevant state agencies, to identify and designate Strategic Energy and Critical Mineral Development Zones. The bill would authorize the county in which a proposed zone is located to submit a request for designation and would authorize the county board of supervisors to, by resolution, authorize the request for designation. The bill would require the Energy Commission to approve or deny a complete submission within 180
days. The bill would require a zone to consist only of geographic areas located within the jurisdictional boundaries of the county submitting the request for designation and would require that certain criteria be satisfied, including that the proposed zone be in an area identified by state or federal agencies as containing significant deposits or identified production potential of critical minerals used in battery, clean energy, or advanced manufacturing supply chains, as specified. The bill would require the Energy Commission to review the designated zones at least every 5 years and authorize the Energy Commission to update the designated zones as appropriate based on changes in energy resources, infrastructure, or economic development planning.
The bill would require state agencies administering programs related to energy infrastructure, economic
development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects, infrastructure investments, and technical assistance located within designated zones that support large-scale clean energy production or energy-intensive industrial development. The bill would require the Governor’s Office of Business and Economic Development to consider designated zones when administering programs intended to support advanced manufacturing, clean technology industries, energy storage supply chains, and other energy-intensive industries. The bill would authorize the Governor’s Office of Business and Economic Development to coordinate with the Energy Commission and other relevant state agencies to support site readiness, infrastructure development, and attracting investment within designated zones.
Under existing law, a violation of the Public Utilities Act or any order, decision, rule,
direction, demand, or requirement of the PUC is a crime.
Because
the
certain
provisions of this bill would be a part of the act and therefore a violation of the bill’s requirements, or of a PUC action implementing its requirements, would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF