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<ns0:Id>20250AB__251699INT</ns0:Id>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Petrie-Norris</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Petrie-Norris</ns0:Name>
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<ns0:Title> An act to add Article 8 (commencing with Section 12100.80) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of, and to add Article 12 (commencing with Section 63049.80) to Chapter 2 of Division 1 of Title 6.7 of, the Government Code, relating to electricity, and making an appropriation therefor. </ns0:Title>
<ns0:RelatingClause>electricity, and making an appropriation therefor</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>California Grid Manufacturing Initiative.</ns0:Subject>
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<html:p>Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office and requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law creates within GO-Biz the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects, as specified.</html:p>
<html:p>This bill would require the Energy Unit, in coordination with other specified state entities, to establish the California Grid Manufacturing Initiative. The bill would require the Energy Unit to serve as the state’s central entity for aggregating demand for critical electricity grid components, to coordinate the procurement of electricity grid components, and to
incentivize new or existing in-state manufacturing of electricity grid components.</html:p>
<html:p>This bill would require each public utility, as defined, on or before January 1, 2028, to submit to the Energy Unit a projection of its purchasing needs for critical electricity grid components for the period of January 1, 2028, through December 31, 2032, inclusive, as provided. The bill would require the Energy Unit, based on the projections, to determine the statewide aggregate purchasing needs for electricity grid components, as specified. The bill would require a public utility that purchases electricity grid components identified pursuant to the bill to purchase those components from the initiative, except as provided. The bill would permit an electrical corporation, and require the Public Utilities Commission, to authorize the recovery of costs incurred by the electrical corporation in implementing the above-described requirements, and would authorize a local publicly owned
electric utility to recover the costs incurred from the implementation of the above-described requirements from its ratepayers. By imposing new duties on local publicly owned electric utilities, the bill would impose a state-mandated local program. </html:p>
<html:p>Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
<html:p>Because a violation of a commission action implementing the bill’s requirement regulating the procurement practices of electrical corporations would be a crime, this bill would impose a state-mandated local program.</html:p>
<html:p>This bill would authorize the Energy Unit to issue requests for proposals or other competitive solicitations to procure electricity grid components, as provided, and would authorize the Energy Unit, if it determines that supply is constrained or unreasonably costly, to offer targeted incentives to
suppliers that establish or expand manufacturing capacity within California. The bill would also authorize the Energy Unit to enter into production joint ventures with qualified private suppliers, as provided, and to provide bond financing and other assistance.</html:p>
<html:p>Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) within GO-Biz and, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided. </html:p>
<html:p>This bill would create the California Grid Manufacturing Initiative Revolving Fund in the State Treasury, and the Manufacturing Incentive Account and the Procurement Account within the revolving fund, for the purpose of providing financial assistance pursuant to the
initiative. The bill would make the moneys in the revolving fund continuously appropriated for expenditure in accordance with the initiative. The bill would authorize the I-Bank, on behalf of the Energy Unit, to issue revenue bonds to finance procurement and manufacturing of electricity grid components, and would require the proceeds of the bonds to be deposited into the respective accounts and used exclusively for the purposes of the initiative. By establishing a continuously appropriated fund, the bill would make an appropriation. </html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for specified reasons.</html:p>
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<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_E8192382-8242-4D96-BB0C-03C5B7F76FB9">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:Content>
<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
California’s electric system depends on timely access to large power transformers, distribution transformers, and other critical grid components to ensure reliability, affordable rates, wildfire resilience, emergency response, and the achievement of the state’s clean energy goals.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
National and global supply chain constraints have resulted in extended lead times, elevated costs, and limited availability of critical grid equipment.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Fragmented procurement and uncoordinated demand signaling by utilities and public agencies increase market
uncertainty and inhibit investment in manufacturing capacity.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Coordinated demand aggregation, centralized procurement, advance market commitments, and targeted manufacturing incentives can reduce risk, lower costs, and expand supply for grid components that are forecast in California energy planning processes.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
In certain circumstances, market forces alone are insufficient to ensure adequate and timely supply, necessitating state-enabled intervention, including public-private partnerships.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Transformer manufacturing constitutes a strategic industry for state intervention and support given the significant role of transformers in equipping the electrical grid for mass electrification, the encumbered supply chain for transformers in California and the United States as a whole, and the potential for transformer
manufacturing to supply a significant base of high-skill, high-paying jobs in California.
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<ns0:BillSection id="id_B948CB47-59AB-49A4-9494-76DFB0AF7F48">
<ns0:Num>SEC. 2.</ns0:Num>
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Article 8 (commencing with Section 12100.80) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the
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, to read:
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<ns0:LawHeading type="ARTICLE" id="id_EC6EB6BA-7FF4-4644-93F4-D0442EF8ED81">
<ns0:Num>8.</ns0:Num>
<ns0:LawHeadingVersion id="id_E87582EC-9109-4644-AAB6-01DA4B75EDA5">
<ns0:LawHeadingText>California Grid Manufacturing Initiative </ns0:LawHeadingText>
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<ns0:LawSection id="id_DCC77B33-F6BA-4196-8274-27F66FE07C71">
<ns0:Num>12100.80.</ns0:Num>
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<ns0:Content>
<html:p>The following definitions apply for purposes of this article:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Energy Unit” means the Energy Unit created within the Governor’s Office of Business and Economic Development pursuant to Section 12100.110.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Initiative” means the California Grid Manufacturing Initiative established pursuant to Section 12100.81.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Public utility” means an electrical corporation as defined in Section 218 of the Public Utilities Code or a local publicly owned electric utility as defined in Section 224.3 of the Public Utilities Code.
</html:p>
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<ns0:LawSection id="id_7F1B1FE1-F8DF-40F3-BCE8-9AC6FE30A31E">
<ns0:Num>12100.81.</ns0:Num>
<ns0:LawSectionVersion id="id_9C5F143C-025F-4414-BBF8-AD188201A85C">
<ns0:Content>
<html:p>The Energy Unit, in coordination with the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Independent System Operator, and the California Infrastructure and Economic Development Bank, shall establish the California Grid Manufacturing Initiative to implement the purposes of this article.</html:p>
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<ns0:LawSection id="id_A597D60F-3FEF-4BC5-9002-32D78A3DFF6A">
<ns0:Num>12100.82.</ns0:Num>
<ns0:LawSectionVersion id="id_7F55C234-B69A-4AF1-8C5F-1AACB623A951">
<ns0:Content>
<html:p>The Energy Unit shall do all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Serve as the state’s central entity for aggregating demand for critical electricity grid components, including large power transformers and distribution transformers.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Coordinate the procurement of electricity grid components.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Incentivize new or existing in-state manufacturing of electricity grid components.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_BD3076FE-3FD2-4B1C-8CE6-BC42DEED2D3E">
<ns0:Num>12100.83.</ns0:Num>
<ns0:LawSectionVersion id="id_189FC5D8-F027-4071-BBFE-AD946D07A40C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before January 1, 2028, each public utility shall submit to the Energy Unit a projection of its purchasing needs for critical electricity grid components for the period of January 1, 2028, through December 31, 2032, inclusive, for which the public utility has not entered into a purchase agreement.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The projection shall include all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Component types and specifications.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Quantities needed of each of the component types.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Delivery timelines.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Anticipated emergency, disaster recovery, and resiliency needs.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Based on the projections, the Energy Unit shall determine the statewide aggregate purchasing needs for electricity grid components, which shall serve as the basis for procurement and manufacturing incentives pursuant to this article.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_66566D02-A21A-4DD0-B159-6871452A3E56">
<ns0:Num>12100.84.</ns0:Num>
<ns0:LawSectionVersion id="id_C358759C-1CAA-43A1-8D1E-F5A6B4105BD7">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A public utility that purchases electricity grid components identified by Section 12100.83 shall purchase those components from the initiative, unless the initiative is unable to provide the requested electricity grid components.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
An electrical corporation may, and the Public Utilities Commission shall, authorize the recovery of costs incurred by the electrical corporation pursuant to this article.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A local publicly owned electric utility may recover from its ratepayers its costs incurred pursuant to this article.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The associated offtake obligation shall apply regardless of
whether the equipment is utilized.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A public utility shall not substitute alternative procurement mechanisms in lieu of participation in the Energy Unit’s authorized procurement in a manner that undermines the demand signal to manufacturers.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_950FDD11-2176-436D-B86B-209F5FF61847">
<ns0:Num>12100.85.</ns0:Num>
<ns0:LawSectionVersion id="id_F9AFE369-DA5F-428D-AE57-4304AC589E45">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Energy Unit is authorized to issue requests for proposals or other competitive solicitations to procure electricity grid components based on the state’s aggregate purchasing needs for electricity grid components, as identified pursuant to subdivision (c) of Section 12100.83.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In conducting procurement pursuant to subdivision (a), the Energy Unit shall prioritize all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Cost and delivery timelines.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In-state manufacturing and high road job creation.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Capacity expansion.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Supply chain resiliency.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Energy Unit shall evaluate whether the market can meet demand in a timely and cost-effective manner without supply-side intervention.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_80FA2D92-F64C-4F91-8857-AC12647EA0B7">
<ns0:Num>12100.86.</ns0:Num>
<ns0:LawSectionVersion id="id_6B28ED93-734B-4665-98DB-E00F2B720035">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
If the Energy Unit determines that supply is constrained or unreasonably costly, it may offer targeted incentives to suppliers that establish or expand manufacturing capacity within California.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Energy Unit shall develop a proposal to offer incentives, which may include any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Bond financing through the California Infrastructure and Economic Development Bank, including for joint ventures.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Low-cost loans or loan guarantees.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Tax incentives administered through existing authorities.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Site, permitting, or regulatory assistance.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Advance purchase or demand backstop agreements.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Incentives shall be conditioned on measurable public benefits, including in-state production, high road job creation, affordability, and capacity expansion.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Energy Unit shall issue one or more requests for qualifications to identify suppliers, original equipment manufacturers, or consortia that are qualified and willing to enter into production joint ventures with the state to manufacture critical grid components in California.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
A request for qualifications issued pursuant to this section shall solicit information, including, but not limited to, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Technical capability and manufacturing experience.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ability to design, construct, finance, and operate manufacturing facilities.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Proposed production capacity and timelines.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Workforce and high road job quality commitments.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Financial capacity and proposed capital contributions.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Identification of barriers to production that could be addressed through state financing, procurement commitments, or regulatory assistance.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Pricing of finished products.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The Energy Unit, after
evaluating the responses to the request for qualifications, may do any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Select one or more qualified suppliers to enter negotiations for production joint ventures.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Invite selected respondents to submit detailed proposals or bids.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Decline to proceed if market conditions improve.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The Energy Unit is not obligated to enter into a joint venture or provide incentives to an entity that responds to a request for qualifications.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_0DC5B5B1-4582-4CB5-8593-AF9FB1E376A8">
<ns0:Num>12100.87.</ns0:Num>
<ns0:LawSectionVersion id="id_35C86F85-2883-4B28-BE42-3F4A865E6016">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Energy Unit is authorized to enter into production joint ventures with qualified private suppliers selected through the request for qualifications process described in Section 12100.86.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Production joint ventures shall be structured to provide for all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Shared ownership, equity stakes, or other legally permissible participation by the state.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Establishment or expansion of manufacturing facilities within California.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Lower cost for finished products as compared to prevailing market prices.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Production joint ventures may be structured to provide for either or both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Allocation of design, construction, financing, and operational responsibilities to the private partner.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Use of special purpose vehicles to carry out joint venture activities.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Energy Unit may provide, subject to availability, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Bond financing through the California Infrastructure and Economic Development Bank, as provided in Section 12100.88.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Low-cost loans or loan guarantees.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Advance purchase commitments or mandatory
offtake agreements.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Site access, leasing of public land, or permitting assistance.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Private suppliers or joint ventures shall submit operating plans that articulate how they will meet cost recovery and procurement goals of the Energy Unit.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The Energy Unit shall ensure that production joint ventures are awarded through a transparent, competitive, and merit-based process, and are structured to protect public funds, ensure high road jobs, and deliver community benefits.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_B9148AAB-4448-4E9F-8555-9DF0A286C6D6">
<ns0:Num>12100.88.</ns0:Num>
<ns0:LawSectionVersion id="id_A53743B0-470D-4D52-A66F-E43809C2525E">
<ns0:Content>
<html:p>The California Infrastructure and Economic Development Bank, on behalf of the Energy Unit, may issue revenue bonds to finance procurement and manufacturing of electricity grid components, as provided in Article 12 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7.</html:p>
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<ns0:LawSection id="id_5D21AFF5-9F0B-410A-9897-7E8E513AC9B9">
<ns0:Num>12100.89.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Upon application by the Energy Unit, the Public Utilities Commission shall approve recovery of costs incurred under this chapter from electric ratepayers.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Recoverable costs may include procurement payments, bond repayment obligations, storage costs, and administrative expenses, net of any offsetting revenues.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Cost recovery shall be subject to commission review for reasonableness, cost-effectiveness, and alignment with state energy policy.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_F9603B6E-1ED0-45AA-A684-EE26878896D6">
<ns0:Num>12100.90.</ns0:Num>
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<ns0:Content>
<html:p>The Energy Unit shall submit an annual report to the Legislature detailing purchasing needs, procurements, manufacturing capacity added, ratepayer costs and savings, job benefits, and fiscal impacts related to the implementation of this article. The annual reports shall be submitted in compliance with Section 9795.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_52C26511-6F02-47AB-BE4A-597240FD33DF">
<ns0:Num>12100.91.</ns0:Num>
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<html:p>If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications, which shall remain in full force and effect.</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Article 12 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the
<ns0:DocName>Government Code</ns0:DocName>
, to read:
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<ns0:LawHeading type="ARTICLE" id="id_BB9C2E9E-1A82-4FC4-B715-07DF8220BAC8">
<ns0:Num>12.</ns0:Num>
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<ns0:LawHeadingText>California Electricity Grid Financing</ns0:LawHeadingText>
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<ns0:Num>63049.80.</ns0:Num>
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<html:p>For the purposes of this article, the following terms have the following meanings:</html:p>
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(a)
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“Account” means either of the following:
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(1)
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The Manufacturing Incentive Account established pursuant to Section 63049.81.
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(2)
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The Procurement Account established pursuant to Section 63049.81.
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(b)
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“California Grid Manufacturing Initiative” means the California Grid Manufacturing Initiative established pursuant to Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2.
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(c)
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“Energy
Unit” means the Energy Unit created within the Governor’s Office of Business and Economic Development pursuant to Section 12100.110.
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(d)
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“Revolving fund” means the California Grid Manufacturing Initiative Revolving Fund established pursuant to Section 63049.81.
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<ns0:Num>63049.81.</ns0:Num>
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<html:p>
(a)
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There is hereby created the California Grid Manufacturing Initiative Revolving Fund in the State Treasury, and the Manufacturing Incentive Account and the Procurement Account within the revolving fund, for the purpose of providing financial assistance pursuant to the California Grid Manufacturing Initiative and, notwithstanding Section 13340, moneys in the revolving fund and the accounts are hereby continuously appropriated, without regard to fiscal years, to the Energy Unit for expenditure in accordance with the California Grid Manufacturing Initiative.
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(b)
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Moneys generated for purposes of Section 12100.87, including proceeds from the sale of bonds to support manufacturing of electricity grid components pursuant to Section 63049.82,
shall be deposited into the Manufacturing Incentive Account.
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<html:p>
(c)
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Moneys generated for purposes of Section 12100.85, including proceeds from the sale of bonds to support the California Grid Manufacturing Initiative’s procurement of electricity grid components and revenues generated from the sale of those components to public utilities, shall be deposited into the Procurement Account.
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<ns0:LawSection id="id_E0554D8E-6E93-444A-8AAA-F97AB1FD90B3">
<ns0:Num>63049.82.</ns0:Num>
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<html:p>
(a)
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The bank, on behalf of the Energy Unit, may issue taxable or tax-exempt revenue bonds pursuant to Chapter 5 (commencing with Section 63070) to finance procurement and manufacturing of electricity grid components pursuant to the California Grid Manufacturing Initiative. The proceeds of the bonds shall be deposited into the respective accounts, as provided in Section 63049.81, and used exclusively for the purposes of the California Grid Manufacturing Initiative. Bond proceeds may also be used to fund necessary reserves, capitalized interest, or costs of issuance.
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<html:p>
(b)
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Bonds issued under this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state or a pledge of the faith and
credit of the state or of any political subdivision, other than the bank, but shall be payable solely from the revolving fund and the assets of the revolving fund, and the security provided by the revolving fund. All bonds issued under this article shall contain on the face of the bonds a statement to that effect.
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<ns0:Num>SEC. 4.</ns0:Num>
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No reimbursement is required by this act pursuant to Section 6 of Article XIII
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B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
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B of the California Constitution.
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