(1) The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development, governed by a board of directors. The act, 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. The Climate Catalyst Revolving Loan Fund Act of 2020 authorizes the I-bank, under the Climate Catalyst Revolving Loan Fund Program, to provide financial assistance to any eligible sponsor or participating party in connection with the financing or refinancing of a climate catalyst project, either directly to the sponsor or participating party or to a lending or financial institution, as provided. The act, beginning in the 2021–22 fiscal year, requires the bank to adopt a climate catalyst financing plan, as specified, after meeting and conferring with prescribed authorized consulting agencies concerning specific categories of climate catalyst projects.
This bill would authorize the I-bank to provide financial assistance in connection with the financing or refinancing of a new category of climate catalyst projects, those that enable the decarbonization of industrial facilities' use of heat and power, including, but not limited to, industrial heat pump and thermal energy storage projects, as specified, with the State Energy Resources Conservation and Development Commission and the State Air Resources Board as consulting agencies. The bill would specify conditions to be satisfied regarding these projects.
(2) Existing law requires the commission to establish and implement the Long-Duration Energy Storage Program to provide financial incentives for eligible projects, including thermal storage, that have power ratings of at least one megawatt and are capable of reaching a target of at least 8 hours of continuous discharge of electricity in order to deploy innovative energy storage systems to the electrical grid for purposes of providing critical capacity and grid services. Existing law requires the commission to give preference to eligible projects that have certain impacts, including those that increase the use of renewable energy.
This bill would establish and implement an Industrial Facilities Thermal Energy Storage Program within the Long-Duration Energy Storage Program to provide financial incentives for eligible projects to decarbonize industrial facilities' use of heat and power, as specified. The bill would include thermal energy storage, as defined, rather than thermal storage, as an eligible project. The bill would require the commission to give preference to eligible projects that increase the use of renewable energy through reducing curtailment and shifting power usage from peak to off-peak times, rather than to all projects that increase the use of renewable energy.
(3) Existing law requires the commission to establish and administer the Industrial Grid Support and Decarbonization Program to provide financial incentives for the implementation of eligible projects at eligible industrial facilities to provide significant benefits to the electrical grid, reduce emissions of greenhouse gases, achieve the state's clean energy goals, and exceed compliance requirements. Existing law subjects projects to certain conditions of eligibility for these financial incentives. Existing law requires the commission, in providing financial incentives, to give preference to certain types of projects.
This bill would rename the program the Industrial Decarbonization and Improvement of Grid Operations Program and would add, among its purposes, reducing emissions of health-harming pollutants. The bill would revise some of the conditions for eligible projects. The bill would, to the greatest extent applicable, require an eligible project to create high road jobs, include project labor agreements or prevailing wages, and contain a workforce training component. The bill would require an eligible project for a facility that has a record of air permit violations to separately develop a plan for pollution remediation, including for ecological and public health harms. The bill would require the commission to also give preference, in providing financial incentives, to an eligible project that is located in an under-resourced community, as defined, and an eligible project that develops a community benefit fund or agrees to pursue a community benefits agreement with the surrounding community and other affected stakeholders. The bill would require the commission to establish a thermal energy storage grant program, administered by eligible local air pollution control districts, to provide funds for the decarbonization of facilities' use of heat and power, with prescribed eligibility. The bill would require that grants be available to eligible industry facilities for early compliance with zero nitrogen oxides emissions limits. The bill would authorize a participating local air pollution control district to establish additional project and industrial facility eligibility guidelines for its thermal energy grant program. The bill would require no less than ____% of the Industrial Decarbonization and Improvement of Grid Operations Program funds to be annually available for the program and would authorize the commission to also provide funds from other sources for the program.

Statutes affected:
AB 1280: 63048.93 GOV, 25640 PRC, 25641 PRC, 25642 PRC, 25645 PRC, 25662 PRC, 25662.2 PRC, 25662.4 PRC
02/21/25 - Introduced: 63048.93 GOV, 25640 PRC, 25641 PRC, 25642 PRC, 25645 PRC, 25662 PRC, 25662.2 PRC, 25662.4 PRC