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SB-1206 GO-Biz: next generation batteries.(2023-2024)

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Date Published: 04/30/2024 09:00 PM
SB1206:v97#DOCUMENT

Amended  IN  Senate  April 30, 2024
Amended  IN  Senate  April 03, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1206

Introduced by Senator Becker

February 15, 2024

An act to add and repeal Article 15.1 (commencing with Section 12100.164) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, relating to batteries.


LEGISLATIVE COUNSEL'S DIGEST


SB 1206, as amended, Becker. GO-Biz: next generation batteries.
Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz), which serves 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 authorizes GO-Biz, until July 1, 2025, to undertake measures that are necessary or useful to prepare and submit an application to receive funding from the regional clean hydrogen hubs program established by the Secretary of the United States Department of Energy or to otherwise participate in the regional clean hydrogen hubs program. Existing law requires grants made from any funding received from the regional clean hydrogen hubs program to be used as specified. The California Renewables Portfolio Standard Program requires the Public Utilities Commission to establish a renewables portfolio standard, as defined, requiring all retail sellers, as defined, to procure a minimum quantity of electricity products from eligible renewable energy resources, as defined, so that the total kilowatthours of those products sold to their retail end-use customers achieves 25% of retail sales by December 31, 2016, 33% by December 31, 2020, 44% by December 31, 2024, 52% by December 31, 2027, and 60% by December 31, 2030. The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would, until January 1, 2030, authorize GO-Biz to undertake measures that are necessary or useful to prepare and submit an application to receive funding from next generation battery hub programs, as defined. The bill would require that grants made from any funding received from next generation battery hub programs under its provisions support projects in California, including, but not limited to, in the San Francisco Bay area and the Sacramento Valley, California that advance progress toward resource adequacy goals and the targets of the scoping plan and the California Renewables Portfolio Standard Program. The bill would also require that grants made from any funding received from next generation battery hub programs under its provisions prioritize projects that meet any of the specified conditions, including that the project help reduce costs and increase access to batteries. Prior to the submission of any applications to receive funding from next generation battery hub programs, the bill would require a partnership entered into pursuant to the above-described provisions to adopt a community benefits plan that includes specified elements. The bill would require GO-Biz to submit a report to the relevant budget and policy committees of the Legislature on or before March 1, 2030, January 1, 2026, and annually thereafter, regarding the status of any partnership entered into pursuant to the above-described provisions.

This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco Bay area and the Sacramento Valley.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 15.1 (commencing with Section 12100.164) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  15.1. Next Generation Batteries

12100.164.
 For purposes of this article, the following definitions apply:
(a) “Office” means the Governor’s Office of Business and Economic Development.
(b) “Regional next generation battery hub programs” means loans or other financing offered by the Loan Programs Office within the United States Department of Energy, the federal advanced manufacturing production credit (26 U.S.C. Sec. 45X), the federal qualifying advanced energy project credit (26 U.S.C. Sec. 48C(c)(1)), Energy or other funding relevant to and consistent with the purposes and intent of the scoping plan prepared pursuant to Section 38561 of the Health and Safety Code and the Clean Energy, Jobs, and Affordability Act of 2022.

12100.165.
 (a) The office may undertake measures that are necessary or useful to prepare and submit an application to receive funding from next generation battery hub programs.
(b) Grants made from any funding received from the regional next generation battery hub programs under this article shall support projects in California, including, but not limited to, in the San Francisco Bay area and the Sacramento Valley, California that advance progress toward resource adequacy goals and the targets of the scoping plan prepared pursuant to Section 38561 of the Health and Safety Code and the California Renewables Portfolio Standard Program (Article 16 (commencing with Section 399.11) of Chapter 2.3 of Part 1 of Division 1 of the Public Utilities Code).
(c) Grants made from any funding received from the regional next generation battery hub programs under this article shall prioritize projects that do any of the following:
(1) Help reduce costs and increase access to next generation batteries.
(2) Advance state greenhouse gas emissions reduction goals.
(3) Maximize socioeconomic, workforce, equity, air quality, and health benefits.
(d) Prior to the submission of any application to receive funding from next generation battery hub programs, a partnership entered into pursuant to this section shall adopt a community benefits plan that includes, at minimum, all of the following elements:
(1) The use of project labor agreements for all construction and maintenance work that ensure payment of prevailing wages and benefits and use of a skilled and trained workforce.
(2) Requirements for operations and manufacturing work that include labor peace policies and the payment of family-supporting wages and benefits.
(3) Hiring and training priority for local workers, veterans, tribal members, workers from underrepresented groups, and disadvantaged workers.
(4) Accountability requirements to ensure that goals for job quality, training, and outreach are achieved.
(e) (1) The office shall submit a report to the relevant budget and policy committees of the Legislature on or before March 1, 2030, January 1, 2026, and annually thereafter, regarding the status of any partnership entered into pursuant to this section.
(2) The requirement for submitting a report imposed under paragraph (1) is inoperative on March 1, 2034, pursuant to Section 10231.5.
(3) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795.
(f) In undertaking the duty described in subdivision (a), the office shall consult and coordinate with relevant stakeholders, including, but not limited to, federal agencies, local governments, and utilities.

12100.166.
 This article shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances existing in the San Francisco Bay area and the Sacramento Valley.