Existing law establishes the Governors Office of Business and Economic Development (GO-Biz) within the Governors office 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 establishes, within GO-Biz, the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals, including by making recommendations, coordinating between the states climate and energy agencies, and cooperating with local, regional, federal, and California public and private businesses and investors.

This bill would set forth related legislative findings and declarations.

Existing law creates the Clean Transportation Program, administered by the State Energy Resources Conservation and Development Commission, to provide, among other things, competitive grants and revolving loans to specified entities for those entities to develop and deploy innovative technologies that transform Californias fuel and vehicle types to help attain the states climate change policies. Existing law also creates the Air Quality Improvement Program, administered by the State Air Resources Board, to fund projects to reduce criteria air pollutants, improve air quality, and provide funding for research to determine and improve the air quality impacts of alternative transportation fuels and vehicles, vessels, and equipment technologies.

This bill would express the intent of the Legislature to enact subsequent legislation that would develop a clean energy deployment plan.

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1182 (Petrie-Norris) - Energy: Decarbonization Funding Plan

Bill Summary:

AB 1182 requires the Department of Finance (DOF) to establish and submit an annual decarbonization funding plan to the Joint Legislative Committee on Climate Change, and establish an interactive internet web portal to identify decarbonization funding opportunities, as specified.

Fiscal Impact:

• Unknown, significant costs to DOF, likely ranging into the high hundreds of thousands to millions of dollars depending on the scope of the required plan and web portal (General Fund).
• The Governor’s Office of Business and Economic Development (GO-Biz) reports minor costs to post a link to the web portal on its website.

Background:

Generally, decarbonization refers to the process of stopping or reducing the amount of greenhouse gas (GHG) emissions produced by processes such as the burning of fossil fuels. There have been many federal and state efforts aimed at reducing the effects of climate change:

• AB 32 (Nunez, Chapter 488, Statutes of 2006) required the California Air Resources Board (CARB) to determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that was equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. AB 32 (Pavley, Chapter 249, Statutes of 2016) modified this goal slightly, requiring CARB to ensure statewide GHG emissions are reduced to 40% below the 1990 level by 2030.
• SB 100 (Petrie-Norris, De León, Chapter 312, Statutes of 2018), which increased the Renewables Portfolio Standard (RPS) requirement from 50 to 60 percent by 2030, and created a policy which endeavors to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045.
• Governor Brown also signed an Executive Order in 2018 requiring that California reduce its net output of greenhouse gases to zero by 2045.
• Governor Newsom has engaged in a number of climate-related efforts as well, including issuing an Executive Order requiring sales of all new passenger vehicles to be zero-emission by 2035, requiring the end of new permits for hydraulic fracturing (or “fracking”) by January 2024, and requesting that CARB analyze how to phase out oil extraction in California by 2045.
• The Inflation Reduction Act of 2022 (IRA) is a federal bill signed recently into law that includes $369 billion in clean energy and climate investments.
• Infrastructure Investment and Jobs Act (IIJA) is a federal bill signed into law on November 15, 2021, that provides $1.2 trillion in funding for a range of infrastructure projects across the U.S., including transportation, broadband, water, and power infrastructure.

Proposed Law:

• Requires DOF to do all of the following in conjunction with the Governor’s Budget:
  • Establish a decarbonization funding plan that identifies opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
  • Submit a plan annually to the Joint Legislative Committee on Climate Change that does all of the following:
    • Retrospectively accounts for all of the decarbonization funding streams received or administered by the state from January 1, 2007, to June 30, 2023, inclusive.
    • Identifies local, state, and federal decarbonization funding sources.
    • Identifies programs that have been funded, are funded, or are expected to be funded by decarbonization funding sources.
    • Identifies decarbonization projects that have been delivered, are being delivered, or are expected to be delivered in the future, as a result of decarbonization funding sources.
    • Suggests efficiencies distributing decarbonization funds, including expediting the application and award process.
    • Identifies opportunities and methods to reduce administration overhead.
    • Provides recommendations on steps that can be taken to increase transparency with respect to grants and project awards.
    • Identifies which programs are most effective at building infrastructure needed to achieve carbon neutrality.
    • Provides recommendations on how to effectively align state decarbonization incentives and allocated general fund moneys with federal funds from the IRA) and IIJA.
  • Post the plan on its website. These reporting requirements become inoperative on June 30, 2028.
• By July, 2024, requires DOF to establish the “Decarbonization Funding Portal” to identify decarbonization funding opportunities. Requires the portal to include an interactive website with, at a minimum, information identifying all federal IRA and IIJA grants, state and federal tax incentives, or other opportunities to maximize the funding for decarbonization projects in the state.
  • Requires GO-Biz to post a link to the portal on its website.
• States legislative intent to ensure the state establishes a decarbonization funding plan that identifies decarbonization opportunities and provides for retrospective accounting for all decarbonization funding streams administered by the state from January 1, 2007 to June 30, 2023, inclusive.
• States legislative findings and declarations.

Staff Comments:

While a fiscal estimate from DOF was not available at the time of this analysis, the one-time and ongoing fiscal impacts of this bill are likely to be significant. The universe of decarbonization funding streams and sources is unknown at this time. DOF would likely require additional staff resources to inventory past and present local, state, and federal funding opportunities, as well as update this inventory and the recommendations required in the plan on an ongoing basis in conjunction with budget deliberations.

DOF would also likely require significant IT resources to establish and maintain the interactive web portal as well as other staff resources to provide technical assistance and respond to inquiries from the public, Legislature, and other state agencies and stakeholders such as nonprofit organizations. The bill does not specify what “interactive” entails, and may encompass a broad range of functions. These functions may include maps or being able to search for funding opportunities by city or county, census tracts, dates, subject matter, eligible organizations, and other various criteria. Any combination of these various interactive functions may impact the total one-time and ongoing costs of building and maintaining the portal.

-- END --

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 1182 (Petrie-Norris) - Energy: Decarbonization Funding Plan

Bill Summary:

AB 1182 requires the Department of Finance (DOF) to establish and submit an annual decarbonization funding plan to the Joint Legislative Committee on Climate Change, and establish an interactive internet web portal to identify decarbonization funding opportunities, as specified.

Fiscal Impact:

• Unknown, significant costs to DOF, likely ranging into the high hundreds of thousands to millions of dollars depending on the scope of the required plan and web portal (General Fund).
• The Governor’s Office of Business and Economic Development (GO-Biz) reports minor costs to post a link to the web portal on its website.

Background:

Generally, decarbonization refers to the process of stopping or reducing the amount of greenhouse gas (GHG) emissions produced by processes such as the burning of fossil fuels. There have been many federal and state efforts aimed at reducing the effects of climate change:

• AB 32 (Nunez, Chapter 488, Statutes of 2006) required the California Air Resources Board (CARB) to determine the 1990 statewide GHG emissions level and approve a statewide GHG emissions limit that was equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. AB 32 (Pavley, Chapter 249, Statutes of 2016) modified this goal slightly, requiring CARB to ensure statewide GHG emissions are reduced to 40% below the 1990 level by 2030.
• SB 100 (Petrie-Norris, De León, Chapter 312, Statutes of 2018), which increased the Renewables Portfolio Standard (RPS) requirement from 50 to 60 percent by 2030, and created a policy which endeavors to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045.
• Governor Brown also signed an Executive Order in 2018 requiring that California reduce its net output of greenhouse gases to zero by 2045.
• Governor Newsom has engaged in a number of climate-related efforts as well, including issuing an Executive Order requiring sales of all new passenger vehicles to be zero-emission by 2035, requiring the end of new permits for hydraulic fracturing (or “fracking”) by January 2024, and requesting that CARB analyze how to phase out oil extraction in California by 2045.
• The Inflation Reduction Act of 2022 (IRA) is a federal bill signed recently into law that includes $369 billion in clean energy and climate investments.
• Infrastructure Investment and Jobs Act (IIJA) is a federal bill signed into law on November 15, 2021, that provides $1.2 trillion in funding for a range of infrastructure projects across the U.S., including transportation, broadband, water, and power infrastructure.

Proposed Law:

• Requires DOF to do all of the following in conjunction with the Governor’s Budget:
  • Establish a decarbonization funding plan that identifies opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
  • Submit a plan annually to the Joint Legislative Committee on Climate Change that does all of the following:
    • Retrospectively accounts for all of the decarbonization funding streams received or administered by the state from January 1, 2007, to June 30, 2023, inclusive.
    • Identifies local, state, and federal decarbonization funding sources.
    • Identifies programs that have been funded, are funded, or are expected to be funded by decarbonization funding sources.
    • Identifies decarbonization projects that have been delivered, are being delivered, or are expected to be delivered in the future, as a result of decarbonization funding sources.
    • Suggests efficiencies distributing decarbonization funds, including expediting the application and award process.
    • Identifies opportunities and methods to reduce administration overhead.
    • Provides recommendations on steps that can be taken to increase transparency with respect to grants and project awards.
    • Identifies which programs are most effective at building infrastructure needed to achieve carbon neutrality.
    • Provides recommendations on how to effectively align state decarbonization incentives and allocated general fund moneys with federal funds from the IRA) and IIJA.
  • Post the plan on its website. These reporting requirements become inoperative on June 30, 2028.
• By July, 2024, requires DOF to establish the “Decarbonization Funding Portal” to identify decarbonization funding opportunities. Requires the portal to include an interactive website with, at a minimum, information identifying all federal IRA and IIJA grants, state and federal tax incentives, or other opportunities to maximize the funding for decarbonization projects in the state.
  • Requires GO-Biz to post a link to the portal on its website.
• States legislative intent to ensure the state establishes a decarbonization funding plan that identifies decarbonization opportunities and provides for retrospective accounting for all decarbonization funding streams administered by the state from January 1, 2007 to June 30, 2023, inclusive.
• States legislative findings and declarations.

Staff Comments:

While a fiscal estimate from DOF was not available at the time of this analysis, the one-time and ongoing fiscal impacts of this bill are likely to be significant. The universe of decarbonization funding streams and sources is unknown at this time. DOF would likely require additional staff resources to inventory past and present local, state, and federal funding opportunities, as well as update this inventory and the recommendations required in the plan on an ongoing basis in conjunction with budget deliberations.

DOF would also likely require significant IT resources to establish and maintain the interactive web portal as well as other staff resources to provide technical assistance and respond to inquiries from the public, Legislature, and other state agencies and stakeholders such as nonprofit organizations. The bill does not specify what “interactive” entails, and may encompass a broad range of functions. These functions may include maps or being able to search for funding opportunities by city or county, census tracts, dates, subject matter, eligible organizations, and other various criteria. Any combination of these various interactive functions may impact the total one-time and ongoing costs of building and maintaining the portal.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Richard Roth, Chair

2023 - 2024 Regular

Bill No: AB 1182 Hearing Date: June 26, 2023

Subject: Energy: Decarbonization Funding Plan

SUMMARY:

Requires the Department of Finance (DOF) to establish a decarbonization funding plan that identifies decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding, among other things. States the plan will contain a retrospective accounting for all of the decarbonization funding streams received or administered by the state, as specified. Requires the plan to identify relevant local, state, and federal decarbonization funding sources and programs, among other things.

Existing law:

1. Establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s Office for the purpose of serving as the lead state agency for economic strategy and marketing of California on issues relating to business development, private sector investment, and economic growth, and authorizes GO-Biz to establish an interactive internet website. (Government Code (GOV) §§ 12096-12098.5)
2. Establishes the Department of Finance (DOF), which performs duties related to finance for the state of California. (GOV §13000)
3. Creates the Energy Unit within GO-Biz, which was established to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals. Requires the Energy Unit to have a deputy director. States the Energy Unit will work with energy project developers and load-serving entities, as defined, to identify barriers to construction and development of critical energy infrastructure projects and to make recommendations to relevant state agencies and local governments on how to overcome those barriers. Requires the Energy Unit to create a working group that includes local and federal partners to address land use issues related to critical energy infrastructure projects. States the deputy director will establish and implement a process to coordinate between the state’s climate and energy agencies in order to identify the critical energy infrastructure projects that will form the operational mandate of the Energy Unit. Requires the deputy director to cooperate with local, regional, federal, and California public and private businesses and investors to eliminate barriers to the completion of critical energy infrastructure projects. Requires the Energy Unit’s work to complement, not conflict with, efforts by the state’s climate and energy agencies. Requires the Energy Unit to submit an annual report on or before February 1 to the relevant policy and fiscal committees of the Legislature that include: 1) the infrastructure priorities identified for purposes of the prior calendar year; 2) the constituencies coordinated with in order to advance those infrastructure priorities in the prior calendar year; 3) the strategies implemented and steps taken to address barriers to and advance critical energy infrastructure projects in the prior calendar year; 4) any recommendations to the Legislature that would accelerate the Energy Unit’s progress. (GOV §12100.110)

This bill:

1. Makes findings and declarations:
2. Climate change and air pollution threaten the health and prosperity of all Californians. Historic droughts, devastating wildfires, storms, extreme heat, and the death of millions of trees are creating billions of dollars in property damage and threatening human health and food supplies.
3. California set ambitious targets to reduce the effects of climate change by reducing greenhouse gas emissions 40 percent below 1990 levels by 2030 and 85 percent below 1990 levels by 2045.
4. President Joe Biden signed into federal law the Infrastructure Investment and Jobs Act (Public Law 117-58) on November 15, 2021, and the Inflation Reduction Act (Public Law 117-169) on August 16, 2022.
5. Federal action adopting the IRA and the IIJA represents a tremendous opportunity to leverage state incentives to win federal funds that align with the state’s climate change, water, and energy goals.
6. Provides intent language for the decarbonization funding plan that says:
7. Identifies decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
8. Provides for a retrospective accounting for all decarbonization funding streams administered by the state from January 1, 2007, to June 30, 2023, inclusive.
9. Defines the following terms:
10. “Decarbonization” means activities and programs that reduce greenhouse gas emissions.
11. “Plan” means the decarbonization funding plan.
12. “Web portal” means Decarbonization Funding Portal, as described in Section 13154.
13. States that in conjunction with the budget, the DOF will:
14. Establish a decarbonization funding plan that identifies decarbonization opportunities to help the state reach its targets to reduce the effects of climate change and sets out priorities for funding.
15. Include in that plan the components described in 5 below.
16. Submit the plan annually to the Joint Legislative Committee on Climate Change.
17. The requirement for submitting a report imposed above is inoperative on June 30, 2028, as specified.
18. A report to be submitted above will be submitted, as specified.
19. Post the plan on the DOF’s internet website.
20. States the plan will do the following:
21. Provide a retrospective accounting for all of the decarbonization funding streams received or administered by the state from January 1, 2007, to June 30, 2023, inclusive.
22. Identify local, state, and federal decarbonization funding sources.
23. Identify programs that have been funded, are funded, or are expected to be funded by decarbonization funding sources.
24. Identify decarbonization projects that have been delivered, are being delivered, or are expected to be delivered in the future, as a result of decarbonization funding sources.
25. Suggest efficiencies distributing decarbonization funds, including expediting the application and award process.
26. Identify opportunities and methods to reduce administration overhead.
27. Provide recommendations on steps that can be taken to increase transparency with respect to grants and project awards.
28. Identify which programs are most effective at building infrastructure needed to achieve carbon neutrality.
29. Provide recommendations on how to effectively align state decarbonization incentives and allocated general fund moneys with federal funds from the Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act (IIJA).
30. Requires DOF to establish an internet web portal, known as the “Decarbonization Funding Portal,” which shall identify decarbonization funding opportunities.
31. States the web portal shall include, but is not limited to, an interactive internet website that is launched to include, at a minimum, information identifying all federal IRA and IIJA grants, state and federal tax incentives, or other opportunities to maximize the funding for decarbonization projects in the state.
32. States GO-Biz will post a link to the internet web portal on its internet website.
33. Sunsets this bill on January 1, 2033.

FISCAL EFFECT:

This bill is keyed fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations, the costs would include one-time and ongoing General Fund costs to GO-Biz, likely in the mid-hundreds of thousands of dollars, for several ongoing positions and one-time workload. According to GO-Biz, it would require $391,000 ongoing for three positions to support the requirements of this bill and $250,000 one-time workload associated with building and launching a new website, posting information to the website, and providing a one-time report.

COMMENTS:

1. Purpose. The California Council for Environmental and Economic Balance (CCEEB) is the Sponsor of this bill. According to the Author, “Climate change and air pollution threaten the health and prosperity of all Californians. Historic droughts, devastating wildfires, storms, extreme heat, coastal erosion, and the death of millions of trees are creating billions of dollars in property damage and threatening human health and food supplies.

Federal adoption of the Infrastructure Investment and Jobs Act in 2021 and the Inflation Reduction Act in 2022 represent a tremendous opportunity to leverage state incentives to win federal funds that align with the State’s climate change, water, and energy goals.

To ensure transparency, efficiency, and effectiveness of the totality of IIJA AND IRA funding across tax, fee, and rate programs in the context of our ambitious energy and climate goals, we need to know what funding sources we have (federal, state, local, and utility mandated) and what has or is being delivered with these funds. Are these programs efficiently getting dollars to projects? Are they effective at building the infrastructure needed to achieve carbon neutrality?”

1. Background.

California’s Green Energy and Economy Efforts Generally. California has been a leader in prioritizing green energy and a green economy. In 2006, AB 32 (Nunez, Chapter 488, Statutes of 2006) required CARB to determine the 1990 statewide greenhouse gas (GHG) emissions level and approve a statewide GHG emissions limit that was equivalent to that level, to be achieved by 2020, and to adopt GHG emissions reductions measures by regulation. AB 32 (Pavley, Chapter 249, Statutes of 2016) modified this goal slightly, requiring CARB to ensure statewide GHG emissions are reduced to 40% below the 1990 level by 2030. In 2018, Governor Jerry Brown signed SB 100 (Petrie-NorrisDe León, Chapter 312, Statutes of 2018), which increased the Renewables Portfolio Standard (RPS) requirement from 50 to 60 percent by 2030, and created a policy which endeavors to meet all of the state's retail electricity supply with a mix of RPS-eligible and zero-carbon resources by December 31, 2045. Governor Brown also signed an Executive Order in 2018 requiring that California reduce its net output of greenhouse gases to zero by 2045. Governor Newsom has engaged in a number of climate-related efforts as well, including issuing an Executive Order requiring sales of all new passenger vehicles to be zero-emission by 2035, requiring the end of new permits for hydraulic fracturing (or “fracking”) by January 2024, and requesting that CARB analyze how to phase out oil extraction in California by 2045. According to the EPA, the oil and gas sector is one of the highest overall contributors to GHG emissions.

In Governor Newsom’s executive order described above that requires sales of all new passenger vehicles to be zero-emission by 2035, Governor Newsom also set the goals of having 100% of medium- and heavy-duty vehicles in the state be zero-emission by 2045 for all operations, where feasible, and by 2035 for drayage trucks, and 100% zero-emission of off-road vehicles and equipment by 2035, where feasible.

The California Climate Crisis Act. In 2021, AB 1395 (Muratsuchi, 2021) would have established The California Climate Crisis Act, which would have made it the policy of the state to achieve net zero greenhouse gas (GHG) emissions and reduce anthropogenic GHG emissions by at least 90% below the 1990 level no later than 2045. This bill was ordered to the inactive file by unanimous consent in the Senate.

GO-Biz. In February 2010, the Little Hoover Commission undertook a review of the state's economic and workforce development programs. In its final report, Making up for Lost Ground: Creating a Governor's Office of Economic Development, it analyzed the status and effectiveness of current programs since the 2003 demise of the Technology, Trade and Commerce Agency (TTCA) and recommended the creation of a new governmental entity to fill the void left by the dismantled agency.

The report called for a single entity that would promote greater economic development, foster job creation, serve as a policy advisor and deliver specific services (i.e., permitting, tax, regulatory, and other information) directly to the California business community. In April 2010, Governor Schwarzenegger issued Executive Order S-05-10 as a means to operationalize the report recommendations including the creation of the Governor's Office of Economic Development (GOED).

In October 2011, the Governor signed AB 29 (John A. Pérez, Chapter 475, Statutes of 2011), which effectively codified GOED and changed its name to GO-Biz. Since its inception, the office has served thousands of businesses, 95 percent of which are small businesses. The most frequent types of assistance include help with permit streamlining, starting a business, relocation and expansion of businesses, and regulatory challenges.

In March 2012, Governor Brown initiated a reorganization process to realign the state's administrative structure. Key changes include dismantling of the Business, Transportation and Housing Agency (BTH) and the shifting of a number of key programs to GO-Biz including the Small Business Loan Guarantee Program, the California Travel and Tourism Commission, the California Film Commission, the Film California First Program, and the Infrastructure and Economic Development Bank (IBank). Currently, GO-Biz administers the following programs and units:

• “Made In California” program for the purpose of encouraging consumer product awareness and to foster the purchases of products manufactured in California.
• The California Inclusive Innovation Hub Program (iHub2) to incubate and/or accelerate technology and science-based firms, with a focus on underserved regions and communities.
• The California Competes Tax Credit Program under which “businesses who want to come to California or stay and grow in California” can receive an income tax credit.
• The California Business Investment Services Unit, which provides no-fee, tailored site selection services to employers and others who may be considering California for relocation or expansion.
• The California Business Portal, which provides information to California businesses about common questions, permitting, financial options, and more.
• The California Community Reinvestment Grants Program, which was included in Proposition 64, authorized GO-Biz to award grants to local health departments and certain nonprofit organizations to support communities disproportionately affected by the War on Drugs.
• Office of the Small Business Advocate which provides information and assistance to small businesses.
• The Zero Emission Vehicles (ZEV) Infrastructure Unit which works to accelerate the deployment of ZEV infrastructure.
• The International Affairs and Business Development Unit, which serves as California’s primary point of contact for expanding international trade and investment relations. This unit focuses on foreign direct investment (services for foreign investors, foreign investment technical assistance, and the EB-5 Investor Visa Program), international trade promotion (STEP program, trade missions, export assistance, and the California-China Trade Office), and international agreements.

GO-Biz Energy Unit. The Energy Unit within GO-Biz was recently established in the 2021 budget cycle. As described above, the purpose of the Energy Unit is to allow GO-Biz to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals, including by identifying barriers, making recommendations, creating a working group, coordinating between the state’s climate and energy agencies, and cooperating with local, regional, federal, and California public and private businesses and investors, as specified.

1. Arguments in Support. The California Council for Environmental and Economic Balance (CCEEB) writes in sponsorship and support:

“AB 1182 seeks to identify and allow California to “co-fund” IRA and IIJA opportunities to help maximize awards coming to our state. Specifically, the legislation defines co-funding as utilizing state-approved incentives and allocated general fund incentive monies to designate as match funds within state-based applications to win awards pursuant to IRA and IIJA. The bill would require, by January 1, 2024, the Governor’s Office of Business and Economic Development (“GO-Biz”) to report to the Legislative Budget Committees and appropriate Subcommitee’s opportunities to align state incentives with federal monies adopted in IRA and IIJA to co-fund grants that meet the State’s energy, water, air quality, and climate goals, so that California remains a competitive recipient for federal funds.

Moreover, the bill would require GO-Biz, in collaboration with state agencies, to align state funding opportunities to maximize awards to projects in California that are in alignment with state energy, climate, air quality, water quality, and water supply goals. By requiring GO-Biz to report annually, by May 15, 2024, and annually thereafter, all awards from IRA and IIJA, including locations in and out of state, California will have a clearer picture of whether we’re succeeding in rapidly deploying funding to critical projects throughout the state.”

Air Products and Chemicals, INC. write in support: “AB 1182 would allow California to co-fund federal incentive dollars by leveraging our existing incentive programs, maximizing incentives and tax benefits for California. By aligning state and federal incentives, California can take advantage of the tremendous opportunity presented by the federal Infrastructure Investment and Jobs Act and Inflation Reduction Act to accelerate investments in clean energy infrastructure and renewable technologies.

AB 1182 is a common-sense solution to help California maintain momentum towards achieving our climate and energy goals, while also addressing the impacts of climate change on our state's infrastructure. This bill ensures that California remains at the forefront of global clean tech innovations, with equity and economic opportunity at the core.”

California Municipal Utilities Association writes in support: “Combined, the potentially available state and federal funding represents opportunities for CMUA’s members to advance key climate-related projects in a ratepayer-friendly manner. But the constellation of grant opportunities, tax incentives, and rebates can be challenging to navigate as each opportunity is administered by different government entities. AB 1182 (Petrie Norris) seeks to remedy this by creating a single point of focus in California and directing GO-Biz to report all the opportunities to align state and federal incentives to the legislative budget committees.”

Mesa Water writes in support: “AB 1182 would increase opportunities for California to “co-fund” IIJA and IRA opportunities by requiring GO-Biz to identify opportunities to align state incentives with federal funds and publicly post and report all federal IIJA and IRA opportunities. State agencies would also be required to collaborate with GO-Biz to maximize federal awards for California projects. California will become an even more competitive recipient of federal funds as a result of these processes.”

SUPPORT AND OPPOSITION:

Support:

California Council for Environmental & Economic Balance (CCEEB) (Sponsor)

Air Products and Chemicals, INC.
California Municipal Utilities Association
Mesa Water District

Opposition:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 1182

Author:(Petrie-Norris)

As Amended Ver:March 20, 2023

Majority vote

SUMMARY

The Energy: GO-Biz bill would identify opportunities to co-fund grants that meet the state's climate goals, post federal Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) grants, tax incentives, or other opportunities on their internet website, and collaborate with state agencies to maximize awards to projects in the state.

Major Provisions

1. Identify opportunities to align state incentives with federal funds adopted in the IRA and the IIJA to co-fund grants.
2. Post all federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, as the grants, incentives, or opportunities are posted federally.
3. Collaborate with state agencies to align state funding opportunities to maximize federal awards to projects in California.
4. Report once by February 1, 2024, on funding opportunities it has identified.
5. Report by May 15, 2024, and annually thereafter, about awards of IRA and IIJA funding.

COMMENTS

According to the Author

The state has several existing efforts dedicated to addressing the impacts of climate change on our state's infrastructure, including funding and research initiatives as well as department and agency led projects to assess climate related vulnerabilities and plan for more climate resilient infrastructure.

1. However, state funds are not enough to achieve our ambition and with waning budget funds, recently appropriated incentives are at risk. Federal adoption of the Infrastructure Investment and Jobs Act in 2021 and the Inflation Reduction Act in 2022 represent a tremendous opportunity to avoid losing the momentum and progress California has made to date.
2. AB 1182 will allow GO-Biz to co-fund federal incentive dollars by leveraging California's incentive programs to maximize the incentives and tax benefits for California. As a result we can accelerate our state's progress toward achieving emission reductions as well as countless other environmental benefits from the IRA and IIJA funding.

Arguments in Support

AB 1182 would leverage once-in-a-life time federal and state funding to maximize California's efforts to reduce greenhouse gases and build the infrastructure needed for a carbon neutral, climate adapted future. The ambition of California's environmental goals will require a transformation of the economy and massive buildout of infrastructure to support a transition to decarbonized energy, which is likely to cost over a half trillion dollars.

Arguments in Opposition

No Opposition on file.

FISCAL COMMENTS

According to Assembly Appropriations Committee, one-time and ongoing General Fund costs to GO-Biz, likely in the mid-hundreds of thousands of dollars, for several ongoing positions and one-time workload. According to GO-Biz, it would require $391,000 ongoing for three positions to support the requirements of this bill and $250,000 one-time workload associated with building and launching a new website, posting information to the website, and providing a one-time report.

VOTES

ASM JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY: 7-0-0

YES: Villapudua, Hoover, Haney, Jackson, Petrie-Norris, Ramos, Wallis

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Sanchez, Weber, Ortega

ABS, ABST OR NV: Robert Rivas

UPDATED

VERSION: March 20, 2023

CONSULTANT: Ashley Bennett / J., E.D., & E. / (916) 319-2090 FN: 0000857

Date of Hearing: May 10, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1182

Author:(Petrie-Norris) – As Amended Ver:March 20, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Governor’s Office of Business and Economic Development (GO-Biz) to take various actions to better align state incentive programs with federal funding awarded through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) to help meet the state’s environmental goals. The bill repeals its provisions January 1, 2033.

Specifically, this bill requires GO-Biz to:

1. Identify opportunities to align state incentives with federal funds adopted in the IRA and the IIJA to cofund grants.
2. Post all federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, as the grants, incentives, or opportunities are posted federally.
3. Collaborate with state agencies to align state funding opportunities to maximize federal awards to projects in California.
4. Report once by February 1, 2024, on funding opportunities it has identified.
5. Report by May 15, 2024, and annually thereafter, about awards of IRA and IIJA funding.

FISCAL EFFECT:

One-time and ongoing General Fund costs to GO-Biz, likely in the mid-hundreds of thousands of dollars, for several ongoing positions and one-time workload. According to GO-Biz, it would require $391,000 ongoing for three positions to support the requirements of this bill and $250,000 one-time workload associated with building and launching a new website, posting information to the website, and providing a one-time report.

COMMENTS:

1. Background. Current law establishes GO-Biz within the Governor’s office 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.

AB 137 (Committee on Budget), Chapter 77, Statutes of 2021, created the Energy Unit within GO-Biz, and tasked the unit with interagency and multi-stakeholder collaboration to identify barriers to clean energy development and other duties.

The IIJA is a federal bill signed into law on November 15, 2021, that provides $1.2 trillion in funding for a range of infrastructure projects across the U.S., including transportation, broadband, water, and power infrastructure. The IRA is a federal bill signed recently into law that includes $369 billion in clean energy and climate investments.

1. Related Legislation. AB 1198 (Grayson) establishes the Equity in Energy Task Force within GO-Biz, and tasks them with identifying energy resources across state programs, identifying participation levels of specified businesses within existing state programs, and provide recommendations on addressing barriers to access the energy industry and establish participation targets, among other duties as described. The bill is pending in this committee.

Analysis Prepared by: Natasha Collins / APPR. / (916) 319-2081

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON UTILITIES AND ENERGY

Eduardo Garcia, Chair

ABPCA Bill Id:AB 1182 (

Author:Petrie-Norris) – As Amended Ver:March 20, 2023

SUBJECT: Energy: GO-Biz

SUMMARY: Requires the Governor’s Office of Business and Economic Development (GO-Biz) to align state incentives with the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) funding and identify opportunities to co-fund grants that meet the state’s climate goals, post all the federal funding opportunities on its website, and collaborate with state agencies to maximize state funding opportunities. Also, requires that GO-Biz report to the Assembly and Senate Budget Committees all identified opportunities by February 1, 2024, and report all federal funding by May 15, 2024.

EXISTING LAW:

1. Establishes GO-Biz within the Governor’s office 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. (Government Code § 12096.2)
2. Establishes, within GO-Biz, the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals. (Government Code § 12096.2)
3. Authorizes GO-Biz to develop content on its Internet website or through other mediums to provide information and resources to the general public about place-based and other geographically targeted economic development programs. (Government Code § 12097.5(a))
4. Requires the office to convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs. (Government Code § 12097.5(b))

FISCAL EFFECT: Unknown. This bill is keyed fiscal and will be referred to the Committee on Appropriations for its review.

BACKGROUND:

GO-Biz — In April 2010, GO-Biz was established as the lead agency for economic strategy and the marketing of California on topics related to business development, private sector investment, and economic growth. While initially established through an executive order^[1], the office was later codified and renamed as GO-Biz^[2]. The office carries out its mission through various service programs such as: California IBank, California Community Reinvestment Grants, California Competes Tax Credit, and Zero-Emission Vehicles programs. Last year, the Legislature established^[3] the Energy Unit to accelerate financing and execution of critical energy infrastructure projects that are necessary for the state to reach its climate and energy goals. GO-Biz is also called upon to encourage collaboration between both the public and the private sectors, foster relationships with overseas entities, conduct research regarding the budget and maintain the state’s business climate. Every two years, GO-Biz submits an approved State Leadership Accountability Report to the Department of Finance and releases it to the public.^[4]

COMMENTS:

1. Author’s Statement. “The state has several existing efforts dedicated to addressing the impacts of climate change on our state’s infrastructure, including funding and research initiatives as well as department‑ and agency‑led projects to assess climate‑related vulnerabilities and the Scoping Plan that maps our pathway to carbon neutrality. However, state funds are not enough to achieve our ambition and with waning budget funds, recently appropriated incentive funds are at risk. Federal adoption of the Infrastructure Investment and Jobs Act in 2021 and the Inflation Reduction Act in 2022 represent a tremendous opportunity to avoid losing the momentum and progress California has made to date. AB 1182 will allow GO-Biz to co-fund federal incentive dollars by leveraging California’s incentive programs to maximize the incentives and tax benefits for California. As a result, we can accelerate our state’s progress toward achieving emission reductions as well as countless other environmental benefits from the IRA and IIJA funding.”
2. Achieving our Climate Goals. The author and supporters of this bill have noted that California’s ambitious climate goals, most recently showcased in CARB’s 2022 Scoping Plan, will require time, effort, and—crucially—money to achieve. They cite the “once-in-a-lifetime” opportunity afforded by the IRA and IIJA to leverage state funds and programs in order to receive hundreds of billions in funding and tax incentives from the federal government. It seems beneficial for the state to not only go after these federal dollars, but to designate, as this bill does, an entity responsible for tracking all the various program threads, application requirements, and potential opportunities, then post this information publicly.
3. GO Biz Leadership. Alliance for Renewable Clean Hydrogen Energy System (ARCHES) is a statewide public-private partnership designed to accelerate the development and deployment of California’s hydrogen market. Considered California’s hydrogen hub, the Legislature allocated $ 5 million last year to ARCHES through GO-Biz for proposal development and startup costs. The state is currently competing to be included in the Department of Energy’s Regional Hydrogen Hubs program funded by IIJA which will provide up to $7 billion to establish six to 10 regional hydrogen hubs. California-led by GO-Biz alongside the Legislature and other stakeholders will provide oversight, accountability, and matching funds by IIJA. Though smaller in version, GO-Biz leadership and coordinating role under ARCHES is similar to this bill which also requires GO-Biz to serve as coordinating entity for California’s funding opportunities under IRA and IIJA.
4. Related Legislation

AB 1198 (Grayson, 2023) establishes the Equity in Energy Task Force within the Governor’s Office of Business and Economic Development (Go-Biz), and tasks them with identifying energy resources across state programs, identifying participation levels of specified businesses within existing state programs, and provide recommendations on addressing barriers to access the energy industry and establish participation targets, among other duties as described. Status: pending hearing in the Assembly Committee on Appropriations after passage in this committee on April 12, 2023 by a 15-0 vote.

1. Prior Legislation.

AB 137 (Committee on Budget) created the Energy Unit within Go-Biz, and tasked the Unit with interagency and multi-stakeholder collaboration to identify barriers to clean energy development, and to accelerate the planning, financing, and execution of critical energy infrastructure. Status: Chapter 77, Statutes of 2021.

AB 742 (Cervantes, 2019) would have established the Office of Place-Based Economic Strategies within GO-Biz for the purpose of supporting local and regional economic development entities to access programs and implement place-based and other community- and neighborhood-level strategies. Status: Died in the Assembly Committee on Appropriations.

REGISTERED SUPPORT / OPPOSITION:

Support

California Council for Environmental & Economic Balance (CCEEB)
California Municipal Utilities Association

Opposition

None on file.

Analysis Prepared by: Lina Malova / U. & E. / (916) 319-2083

1. Executive Order S-05-10 ↑

2. AB 29 (Pérez), Chapter 475, Statutes of 2010 ↑

3. AB 137, Assembly Committee on Budget, Chapter 77, Statutes of 2021 ↑

4. GO Biz; “About GO-Biz” https://business.ca.gov/about/about-go-biz/ ↑

5. White House, “Infaltion Reduction Act Guidebook”; https://www.whitehouse.gov/cleanenergy/inflation-reduction-act-guidebook/ ↑

6. EDF, “The biggest thing Congress has ever done to address climate change;” https://www.edf.org/blog/2022/08/12/biggest-thing-congress-has-ever-done-address-climate-change ↑

7. White House, “Updated Fact Sheet: Bipartisan Infrastructure and Jobs Act;” https://www.whitehouse.gov/briefing-room/statements-releases/2021/08/02/updated-fact-sheet-bipartisan-infrastructure-investment-and-jobs-act/ ↑

8. DOT, “National Electric Vehicle Infrastructure (NEVI) Program”; https://www.fhwa.dot.gov/environment/nevi/ ↑

9. EV Charging Summit; “How to Obtain Federal EV charging Infastructure Grants in California”; https://evchargingsummit.com/blog/how-to-obtain-federal-ev-charging-infrastructure-grants-in-california/ ↑

10. CEC, “Inflation Reduction Act Residential Energy Rebate Programs in California;” https://www.energy.ca.gov/programs-and-topics/programs/inflation-reduction-act-residential-energy-rebate-programs-california ↑

11. EPA; “EPA Announces Initial Program Design of Greenhouse Gas Reduction Fund”; EPA Announces Initial Program Design of Greenhouse Gas Reduction Fund | US EPA ↑

12. CARB; 2022 SCOPING PLAN FOR ACHIEVING CARBON NEUTRALITY,” November 2022 ↑

Date of Hearing: April 25, 2023

ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY

Carlos Villapudua, Chair

ABPCA Bill Id:AB 1182 (

Author:Petrie-Norris) – As Amended Ver:March 20, 2023

SUBJECT: Energy: GO-Biz

SUMMARY: The Energy: GO-Biz bill would identify opportunities to co-fund grants that meet the state’s climate goals, post federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, and collaborate with state agencies to maximize awards to projects in the state.

Specifically, this bill: Finds and declares all of the following:

1. (a) Climate change and air pollution threaten the health and prosperity of all Californians. Historic droughts, devastating wildfires, storms, extreme heat, and the death of millions of trees are creating billions of dollars in property damage and threatening human health and food supplies.
2. (b) California set ambitious targets to reduce the effects of climate change by reducing greenhouse gas emissions 40 percent below 1990 levels by 2030 and 85 percent below 1990 levels by 2045.
3. (c) President Joe Biden signed into federal law the Infrastructure Investment and Jobs Act (Public Law 117-58) on November 15, 2021, and the Inflation Reduction Act (Public Law 117-169) on August 16, 2022.
4. (d) Federal action adopting the IRA and the IIJA represents a tremendous opportunity to leverage state incentives to win federal funds that align with the state’s climate change, water, and energy goals.
5. Defines “cofund” for Federal Energy Incentive Alignment and for the purposes of this section, “cofund” means designating state-approved incentives and allocated general fund incentive moneys as match funds within state-based applications to win awards pursuant to the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).
6. (b) The Governor’s Office of Business and Economic Development (GO-Biz) shall do all of the following to align state incentives with federal funds awarded in the IRA and the IIJA that meet the state’s energy, water, air quality, and climate goals:
7. (1) Identify opportunities to align state incentives with federal funds adopted in the IRA and the IIJA to cofund grants.
8. (2) Post all federal IRA and IIJA grants, tax incentives, or other opportunities on their internet website, as the grants, incentives, or opportunities are posted federally.
9. (3) Collaborate with state agencies to align state funding opportunities to maximize federal awards to projects in California.
10. (c) GO-Biz shall provide the following reports to the Assembly and Senate Budget Committees and appropriate subcommittees:
11. (1) By February 1, 2024, a report of all opportunities identified
12. (2) By May 15, 2024, and annually thereafter, a report of all awards to entities in the state from the IRA and the IIJA, including all of the following:

(A) Location of entities granted awards.

(B) A total of all awards in the state.

1. (3) A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795.
2. (d) This article shall remain in effect only until January 1, 2033, and as of that date is repealed.

EXISTING LAW:

1. Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office 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.
2. Existing law establishes, within GO-Biz, the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects that are necessary for the state to reach its climate, energy, and sustainability policy goals, including by making recommendations, coordinating between the state’s climate and energy agencies, and cooperating with local, regional, federal, and California public and private businesses and investors.

Related Legislation from Previous Sessions:

AB 1049 (Dodd) 2022 Transportation Resilience Program: This bill would establish the Transportation Resilience Program in the Department of Transportation, to be funded in the annual Budget Act from 15% of the available federal National Highway Performance Program funds and 100% of the available federal Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation program funds. The bill would provide for funds to be allocated by the California Transportation Commission for climate adaptation planning and resilience improvements, as defined, that address or mitigate the risk of recurring damage to, or closures of, the state highway system, other federal-aid roads, public transit facilities, and other surface transportation assets from extreme weather events, sea level rise, or other climate change-fueled natural hazards. The bill would establish specified eligibility criteria for projects to receive funding under the program and would require the commission to prioritize projects that meet certain criteria.

AB 2974 (JEDE) 2022 Small Business Procurement and Contract Act: federal Infrastructure Investment and Jobs Act funding: This bill would require each state agency to encourage small business participation in new contracts over $500,000 for the construction, alternation, demolition, repair or improvement of the state’s infrastructure that is funded with proceeds from the federal Infrastructure Investment and Jobs Act (Act), to establish a 25% small business participation goal in all contracts that the agency finances with these proceeds. The bid issued by the state agency is required to include a disadvantaged business enterprise procurement participation requirement, or if compliance with these provisions would make the state’s application for a competitive federal program less competitive than other eligible applicants, as provided. Each state agency that has awarded any contract financed with funding from the act will report to the Director of General Services with the statistics comparing the small business and microbusiness participation dollars for contracts funded by the Act to the total contract dollars funded by the Act, as provided.

SB 1295 (Limon) 2022 Oil and gas: hazardous or deserted wells and facilities: labor standards: expenditure limits: reports: This bill would deem all work to plug and abandon wells, decommission production facilities, or otherwise remediate well sites that is undertaken, funded, or financed by the division, as specified, and performed by outside contractors to be public work for which prevailing wages are required to be paid. Contracts that are awarded, extended, or renewed on or after January 1, 2028, and for specified work performed by contractors licensed by the Contractors State License Board, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites, that contractors and any subcontractors at every tier use a skilled and trained workforce, as defined, to perform all work within an apprentice able occupation, as defined, in the building and construction trades, as defined. Existing law requires the supervisor to make public, on or before the first day of October of each year, a report in writing showing, among other things, the total amounts of oil and gas produced in each county in the state during the previous calendar year and the total cost of the division for the previous fiscal year. This bill would also require the supervisor to include in the report on the total cost of the division for the previous fiscal year an accounting of any General Fund moneys appropriated and used for plugging and abandonment of wells, decommissioning of facilities, and site remediation, or appropriated and used to facilitate those activities.

FISCAL EFFECT: This bill is expected to have significant anticipated cost

COMMENTS: The recently adopted Federal IRA and IIJA provides significant federal grant and tax programs that will help accelerate investments in clean energy infrastructure and renewable technologies.

1. The Inflation Reduction Act (IRA), which was recently signed into law, sets out to cut Americans’ energy costs, create good jobs, and address the climate crisis as noted in the Center for American Progress Report: How States and Cities Can Benefit From Climate Investments in the Inflation Reduction Act. The act includes $369 billion in clean energy and climate investments.

Specifically the Inflation Reduction Act:

• Enacts historic deficit reduction to fight inflation
• Lowers energy costs, increases cleaner production, and reduces carbon emissions by roughly 40 percent by 2030.
• Allows Medicare to negotiate drug prices and caps out-of-pocket costs to $2,000
• Lowers ACA health care premiums for millions of Americans

1. The Infrastructure Investment and Jobs Act (IIJA) is a bipartisan infrastructure bill that was signed into law on November 15, 2021. The bill provides $1.2 trillion in funding for a range of infrastructure projects across the United States, including transportation, broadband, water, and power infrastructure.

• The bill includes significant investments in transportation infrastructure, including $110 billion for roads, bridges, and major projects
• $66 billion for passenger and freight rail
• $39 billion for public transit.
• $65 billion for broadband infrastructure
• $55 billion for water infrastructure
• $73 billion for power infrastructure, among other investments.

In addition to infrastructure spending, the bill includes funding for a range of other programs, including $15 billion for electric vehicle infrastructure, $25 billion for airports, and $7.5 billion for electric school buses. The bill is expected to create millions of jobs across the United States and support economic growth and development in a range of industries. Coordination will be paramount to aligning California’s efforts to apply, access, leverage and implement these historic federal investments.

Author’s Statement

The state has several existing efforts dedicated to addressing the impacts of climate change on our state’s infrastructure, including funding and research initiatives as well as department and agency led projects to assess climate related vulnerabilities and plan for more climate resilient infrastructure.

However, state funds are not enough to achieve our ambition and with waning budget funds, recently appropriated incentives are at risk. Federal adoption of the Infrastructure Investment and Jobs Act in 2021 and the Inflation Reduction Act in 2022 represent a tremendous opportunity to avoid losing the momentum and progress California has made to date.

AB 1182 will allow GO-Biz to co-fund federal incentive dollars by leveraging California’s incentive programs to maximize the incentives and tax benefits for California. As a result we can accelerate our state’s progress toward achieving emission reductions as well as countless other environmental benefits from the IRA and IIJA funding.

REGISTERED SUPPORT / OPPOSITION:

Support

California Council for Environmental & Economic Balance (CCEEB)
California Municipal Utilities Association

Opposition

None on file

Analysis Prepared by: Carla Castilla / J., E.D., & E. / (916) 319-2090