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.

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.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

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.

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.

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.