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 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 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.