Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to, among other duties, 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. In this regard, existing law authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law 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.

Existing law establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on Californias industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy. Existing law requires the Community Economic Resilience Fund Program to be administered by Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. Existing law refers to these 3 agencies as the Inter-Agency Leadership Team.

This bill would, until January 1, 2030, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region. The bill would require the Inter-Agency Leadership Team, on or before September 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified. The bill would authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.

The bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.

Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to, among other duties, 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. In this regard, existing law authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law 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.

Existing law establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on Californias industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy. Existing law requires the Community Economic Resilience Fund Program to be administered by Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. Existing law refers to these 3 agencies as the Inter-Agency Leadership Team.

This bill would, until January 1, 2035, 2030, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region. The bill would require the Inter-Agency Leadership Team, on or before June September 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified. The bill would authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.

The bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.

Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to, among other duties, 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. In this regard, existing law authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law 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.

Existing law establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on Californias industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy. Existing law requires the Community Economic Resilience Fund Program to be administered by Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. Existing law refers to these 3 agencies as the Inter-Agency Leadership Team.

This bill would, until January 1, 2035, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region. The bill would require the Inter-Agency Leadership Team, on or before June 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified. The bill would authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.

The bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.

Existing law establishes the Governors Office of Business and Economic Development, also known as GO-Biz, to, among other duties, 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. In this regard, existing law authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law 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.

Existing law establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on Californias industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy. Existing law requires the Community Economic Resilience Fund Program to be administered by Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. Existing law refers to these 3 agencies as the Inter-Agency Leadership Team.

This bill would, until January 1, 2035, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region. The bill would require the Inter-Agency Leadership Team, on or before June 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified. The bill would authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.

The bill would make legislative findings and declarations as to the necessity of a special statute for the County of Imperial.

GOVERNOR'S VETO

GV Bill Id:AB 2757

Author:(Garcia)

As Enrolled Ver:September 3, 2024

2/3 vote

SUMMARY

This bill creates the Lithium Valley Commission to tackle challenges in the Imperial and Eastern Coachella Valleys. It seeks to secure an economic designation to maximize the region's benefits and competitiveness for funding. This bill establishes, until January 1, 2030, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation's defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

Floor Amendments as of 8/23/24:

1) extend the deadline for preparing a list of state programs for which the Southeast California Economic Region designation can be used from June 1, 2025, to September 1, 2025; 2) require a copy of the list be submitted to the County Administrator's Office for the Counties of Imperial and Riverside and to the members of the Blue Ribbon Commission on Lithium Extraction in California; and 3) reduce the term of the designation from January 1, 2035, to January 1, 2030.

Governor’s Veto Message

This bill would establish the Southeast California Economic Region (SECER) to promote regional economic development in those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and align state and federal programs, including the California Jobs First Regional Investment Initiative (RII).

In 2021, my Administration and the Legislature made a historic investment into regional economic development through the RII. Within that initiative, the Southern Border and Inland Empire regions were each provided resources to develop regional economic strategies, which were recently completed. My Administration is currently reviewing these strategies and beginning to identify how this first-of-its-kind effort can evolve to better meet the needs of each of California's regions and communities, including the complexities and unique opportunities within regions.

Economic development in the Salton Sea Region is critical to positioning California as a global leader in sustainable lithium development and renewable energy production. This development should ensure that the economic benefits and opportunities support the growth and success of local communities, including Imperial County. My Administration has been working to support the region through public-private partnerships and leveraging state efforts to maximize coordination and partnership for inclusive economic development.

However, the creation of the SECER at this time would have unintended negative consequences for the RII program implementation. This multi-year program is poised to invest resources in projects that align with the priorities developed during the planning phase. The establishment of SECER would require the creation of new RII administrative entities, restart the area's planning process, and divert funds away from implementation projects, creating challenges for development for the region and local communities.

COMMENTS

Before 2003, California's economic development programs were managed by the Technology, Trade, and Commerce Agency. The 2003-04 Budget Act eliminated this Agency and many of its programs. In 2011, GO-Biz was created to lead economic strategy and business development in California. GO-Biz provides advisory roles, supports business relocation and expansion, and manages programs like CalOSBA and the California Competes Tax Credit Program. It also oversees entities like the California Film Commission and the Infrastructure and Economic Development Bank.

In 2022, GO-Biz established the Community and Place-Based Solutions Team to assist local governments and organizations with community development, focusing on place-based strategies to boost investment in disadvantaged areas. California is divided into 13 economic regions for this purpose. Additionally, AB 1657 required the California Energy Commission to create a Blue Ribbon Commission on Lithium Extraction, leading to the designation of the "Salton Sea Region" for lithium extraction.

According to the Author

AB 2757 would establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses in parts of Eastern Riverside County and the Imperial County. This bill would help the region compete for federal, state, and local funding, services, and investments.

Arguments in Support

Supporters argue that our desert regions are currently grouped with areas that have vastly different needs and resources, such as the County of Imperial with San Diego and the Coachella Valley with the Inland Empire. This administrative practice overlooks the unique needs of southeastern communities, diluting their interests and opportunities. AB 2757 aims to rectify this by fostering targeted public and private investments in California's southeastern desert region. It seeks to enhance economic development in the area by better aligning communities of interest and attracting capital more effectively.

Arguments in Opposition

No opposition on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee, The Governor's Office of Business and Economic Development (GO-Biz) indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

VOTES

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

YES: Villapudua, Hoover, Stephanie Nguyen, Petrie-Norris, Ramos, Soria, Wallis

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 72-0-8

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas

SENATE FLOOR: 39-0-1

YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Alvarado-Gil

ASSEMBLY FLOOR: 76-0-3

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Robert Rivas

ABS, ABST OR NV: Cervantes, Ortega, Zbur

UPDATED

VERSION: September 3, 2024

CONSULTANT: Carla Castilla / J., E.D., & E. / (916) 319-2090 FN: 0005116

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2757

Author:(Garcia)

As Amended Ver:August 23, 2024

Majority vote

SUMMARY

This bill creates the Lithium Valley Commission to tackle challenges in the Imperial and Eastern Coachella Valleys. It seeks to secure an economic designation to maximize the region's benefits and competitiveness for funding. This bill establishes, until January 1, 2030, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation's defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

Senate Amendments

Floor Amendments of 8/23/2024

(1) extend the deadline for preparing a list of state programs for which the Southeast California Economic Region designation can be used from June 1, 2025, to September 1, 2025; (2) require a copy of the list be submitted to the County Administrator's Office for the Counties of Imperial and Riverside and to the members of the Blue Ribbon Commission on Lithium Extraction in California; and (3) reduce the term of the designation from January 1, 2035, to January 1, 2030.

COMMENTS

Before 2003, California's economic development programs were managed by the Technology, Trade, and Commerce Agency. The 2003-04 Budget Act eliminated this Agency and many of its programs. In 2011, GO-Biz was created to lead economic strategy and business development in California. GO-Biz provides advisory roles, supports business relocation and expansion, and manages programs like CalOSBA and the California Competes Tax Credit Program. It also oversees entities like the California Film Commission and the Infrastructure and Economic Development Bank.

In 2022, GO-Biz established the Community and Place-Based Solutions Team to assist local governments and organizations with community development, focusing on place-based strategies to boost investment in disadvantaged areas. California is divided into 13 economic regions for this purpose. Additionally, AB 1657 required the California Energy Commission to create a Blue Ribbon Commission on Lithium Extraction, leading to the designation of the "Salton Sea Region" for lithium extraction.

According to the Author

AB 2757 would establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses in parts of Eastern Riverside County and the Imperial County. This bill would help the region compete for federal, state, and local funding, services, and investments.

Arguments in Support

Supporters argue that our desert regions are currently grouped with areas that have vastly different needs and resources, such as the County of Imperial with San Diego and the Coachella Valley with the Inland Empire. This administrative practice overlooks the unique needs of southeastern communities, diluting their interests and opportunities. AB 2757 aims to rectify this by fostering targeted public and private investments in California's southeastern desert region. It seeks to enhance economic development in the area by better aligning communities of interest and attracting capital more effectively.

Arguments in Opposition

No opposition on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee, The Governor's Office of Business and Economic Development (GO-Biz) indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

VOTES:

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

YES: Villapudua, Hoover, Stephanie Nguyen, Petrie-Norris, Ramos, Soria, Wallis

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 72-0-8

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas

SENATE FLOOR: 39-0-1

YES: Allen, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Alvarado-Gil

UPDATED

VERSION: August 23, 2024

CONSULTANT: Carla Castilla/ J., E.D., & E. / (916) 319-2090 FN: 0004959

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 2757

Author:(Garcia)

As Amended Ver:August 23, 2024

Majority vote

SUMMARY

This bill creates the Lithium Valley Commission to tackle challenges in the Imperial and Eastern Coachella Valleys. It seeks to secure an economic designation to maximize the region's benefits and competitiveness for funding. This bill establishes, until January 1, 2030, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation's defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

Senate Amendments

Floor Amendments of 8/23/2024

(1) extend the deadline for preparing a list of state programs for which the Southeast California Economic Region designation can be used from June 1, 2025, to September 1, 2025; (2) require a copy of the list be submitted to the County Administrator's Office for the Counties of Imperial and Riverside and to the members of the Blue Ribbon Commission on Lithium Extraction in California; and (3) reduce the term of the designation from January 1, 2035, to January 1, 2030.

COMMENTS

Before 2003, California's economic development programs were managed by the Technology, Trade, and Commerce Agency. The 2003-04 Budget Act eliminated this Agency and many of its programs. In 2011, GO-Biz was created to lead economic strategy and business development in California. GO-Biz provides advisory roles, supports business relocation and expansion, and manages programs like CalOSBA and the California Competes Tax Credit Program. It also oversees entities like the California Film Commission and the Infrastructure and Economic Development Bank.

In 2022, GO-Biz established the Community and Place-Based Solutions Team to assist local governments and organizations with community development, focusing on place-based strategies to boost investment in disadvantaged areas. California is divided into 13 economic regions for this purpose. Additionally, AB 1657 required the California Energy Commission to create a Blue Ribbon Commission on Lithium Extraction, leading to the designation of the "Salton Sea Region" for lithium extraction.

According to the Author

AB 2757 would establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses in parts of Eastern Riverside County and the Imperial County. This bill would help the region compete for federal, state, and local funding, services, and investments.

Arguments in Support

Supporters argue that our desert regions are currently grouped with areas that have vastly different needs and resources, such as the County of Imperial with San Diego and the Coachella Valley with the Inland Empire. This administrative practice overlooks the unique needs of southeastern communities, diluting their interests and opportunities. AB 2757 aims to rectify this by fostering targeted public and private investments in California's southeastern desert region. It seeks to enhance economic development in the area by better aligning communities of interest and attracting capital more effectively.

Arguments in Opposition

No opposition on file.

FISCAL COMMENTS

According to the Senate Appropriations Committee, The Governor's Office of Business and Economic Development (GO-Biz) indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

VOTES:

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

YES: Villapudua, Hoover, Stephanie Nguyen, Petrie-Norris, Ramos, Soria, Wallis

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

ASSEMBLY FLOOR: 72-0-8

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas

UPDATED

VERSION: August 23, 2024

CONSULTANT: Carla Castilla/ J., E.D., & E. / (916) 319-2090 FN: 0004959

 THIRD READING  

Bill No: AB 2757

Author: Garcia (D), et al.

Amended: 8/23/24 in Senate

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 7/1/24

AYES: Ashby, Nguyen, Alvarado-Gil, Archuleta, Becker, Dodd, Eggman, Glazer, Menjivar, Niello, Roth, Smallwood-Cuevas, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 72-0, 5/22/24 - See last page for vote

SUBJECT: Southeast California Economic Region

SOURCE: Author

DIGEST:

This bill establishes, until January 1, 2030, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

Senate Floor Amendments of 8/23/24 (1) extend the deadline for preparing a list of state programs for which the Southeast California Economic Region designation can be used from June 1, 2025, to September 1, 2025; (2) require a copy of the list be submitted to the County Administrator’s Office for the Counties of Imperial and Riverside and to the members of the Blue Ribbon Commission on Lithium Extraction in California; and (3) reduce the term of the designation from January 1, 2035, to January 1, 2030.

ANALYSIS:

Existing law:

1. Establishes GO-Biz within the Governor's office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (Government Code (GC) §§ 12096 et. seq.)
2. Authorizes GO-Biz to develop content in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development; and Opportunity Zones designated by the United States Treasury. Requires GO-Biz to at least annually convene 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. (GC § 12097.5)
3. Establishes a Blue Ribbon Commission on Lithium Extraction in California (Lithium Valley Commission) composed of 14 members tasked with reviewing, investigating, and analyzing the specified issues relating to lithium extraction and use in California, including but not limited to, the potential economic and environmental impacts to the state resulting from extraction, processing, and production of lithium and lithium-dependent products from geothermal brines and the importance of, and opportunities for, the application of local, state, and federal incentives and investments to facilitate lithium extraction from geothermal brines. Requires the Lithium Commission to submit a report to the Legislature documenting findings. (Public Resources Code § 25232)
4. Establishes the Salton Sea Authority, a joint powers authority formed by the County of Imperial, the County of Riverside, the Coachella Valley Water District, and the Imperial Irrigation District, authorized to form an infrastructure financing district for the purpose of funding the construction of, and purchasing electrical power for, projects for the reclamation and environmental restoration of the Salton Sea. (GC § 53395.9)
5. Creates the Salton Sea Lithium Fund within the State Treasury administered by the Natural Resources Agency into which moneys generated by the lithium excise tax are deposited. Directs the Natural Resources Agency to allocate moneys in the fund for restoration projects and grants for community engagement, public amenity, capital improvement, or community-benefit projects, including projects to help build capacity for meaningful public participation and outreach, at or around the Salton Sea and those communities impacted by the Salton Sea’s restoration and development, among other activities. (Fish and Game Code § 2951)

This bill:

1. Designates a Southeast California Economic Region with boundaries that align with the Southeast California Economic Zone recommended in the Lithium Commission report and with the purpose of better aligning state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region, as well as contributing to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses, using participatory decisionmaking and taking a multijurisdictional approach, which leverages the competencies of public, private, and nonprofit sectors for the region’s transformational future.
2. Requires the Inter-Agency Leadership Team, which consists of representatives from Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz, to prepare a list of state programs that must use the Southeast California Economic Region designation for planning and funding purposes. Specifies that the list must provide guidance to state agencies on how to acknowledge and utilize the Southeast California Economic Region designation and boundaries in program and service delivery, planning activities, and making funding awards. Requires the list to be submitted to the County Administrator’s Office for the Counties of Imperial and Riverside and to the members of the Blue Ribbon Commission on Lithium Extraction in California
3. Authorizes the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development that builds upon and aligns with the inclusive planning efforts of previously approved plans and strategies.
4. Makes various findings and declarations and states legislative intent to establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses. A special focus of this work shall be those communities and groups of individuals who have historically been excluded from decision-making and the benefits of economic development projects.

Background

In 2022, GO-Biz established the Community and Place-Based Solutions Team (Team) to support local governments, non-profits, community-based organizations, colleges and universities, and other economic development partners in their community development needs. The Team provides key technical assistance for community and economic development planning. According to the Team’s website, place-based economic development strategies are initiatives to encourage economic and community development activity in defined geographic areas. Many communities have started emphasizing place-based strategies to strengthen hyperlocal activities around physical place, economic conditions and social infrastructure. Place-based economic development strategies include a variety of approaches to incentivize investment in disadvantaged communities, including funding for infrastructure & public facilities, job creation & workforce development, affordable & workforce housing, and more. The following comprise the state’s 13 economic regions:

• Greater Sacramento
• Redwood Coast
• North State
• Bay Area
• Northern San Joaquin Valley
• Central San Joaquin Valley
• Central & Eastern Sierra
• Kern County
• Central Coast
• Inland Empire
• Los Angeles County
• Orange County
• Southern Border

Salton Sea and Lithium. Global demand for lithium is expected to grow as much as ten-fold over the next decade, particularly with the increasing use of lithium in batteries in multiple energy and transportation applications. An increase in demand for lithium coupled with advances in processes and technologies for lithium recovery, may provide California with a unique opportunity to foster a more environmentally-sound lithium product coupled with geothermal electricity production. Increased recovery of lithium from geothermal brine is also expected to generate revenue and local in-state economic development opportunities in an economically-depressed area, and the potential to produce a world-class source of battery-grade lithium within California.

California has vast lithium deposits – potentially as much as one third of the world’s current lithium demand according to some industry estimates. Most of these deposits are located in, and around, the Salton Sea. The Salton Sea, California's largest lake, is located in a desert sink in the Southern California counties of Imperial and Riverside. The Salton Sea is 35 miles long and 15 miles wide. The Salton Sea has been shrinking for decades and the impacts create both an environmental and public health disaster with significant costs. The Salton Sea has no outlets and because of its location in an area of high evaporation, has been accumulating soluble salts and insoluble constituents in its bottom sediment for more than 100 years. The Salton Sea is seen as presenting a unique opportunity to extract lithium from the brine that is already being produced by geothermal power plants around the Salton Sea.

AB 1657 (E. Garcia, Chapter 271, Statutes of 2020) required the California Energy Commission to convene the Lithium Valley Commission. The Lithium Commission’s report was published in December 2022 and presented a series of key findings and recommendations. The report notes that “The recovery of lithium from geothermal brine using [direct lithium extraction (DLE)], and the growth of a regional economic hub or cluster that includes additional lithium processing and production of mineral compounds in developing Lithium Valley could lead to substantial economic growth in the region. There may also be additional economic activity associated with the recovery of other minerals from geothermal brine and the development of manufacturing plants that use Imperial County lithium and other minerals from recovered from geothermal brine.” According to the report, “…it is imperative that new geothermal lithium recovery and related projects prioritize development and hiring of a local workforce, provide resources to support development of necessary training and educational opportunities, and commit to requirements for strong workforce and labor standards that produce high-quality jobs and careers.”

Among other recommendations, the report specifically recommends the establishment of a Southeast California Economic Zone, which includes Imperial County and Eastern Coachella and Palo Verde Valleys. This regional economic zone should be recognized by federal, state, and local governments, and eligible to compete for funding and investments. The goals of the regional economic zone should balance representation from labor, business, community, government, Tribes, and other stakeholders. With respect to lithium recovery, investments should be prioritized in the communities closest to geothermal power plants and DLE facilities. Incentives should be provided for direct DLE development, and indirect development, and include incentives for childcare, research and development, and construction and non-construction apprenticeships. The report also recommends that the state and county establish a business service center in Imperial County to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, Tribal members, small businesses, and entrepreneurs.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Committee on Appropriations, GO-Biz indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

SUPPORT: (Verified 8/22/24)

Alianza Coachella Valley

Coachella Valley Housing Coalition

Coachella Valley Water District

Coachella; City of

Comite Civico Del Valle

Comite Civico Del Valle, Inc.

County of Imperial

County of Riverside Supervisor V. Manuel Perez

Desert Community College District

Desert Healthcare District and Foundation

Desert Recreation District

Imperial Irrigation District

Imperial Valley Equity & Justice Coalition

International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America

Jobs to Move America

LA Cooperativa Campesina De California

Lideres Campesinas

Lift to Rise

Los Amigos De LA Comunidad, Inc.

Salton Sea Authority

Sierra Club California

UAW Region 6

Universidad Popular

OPPOSITION: (Verified 8/22/24)

None received

ARGUMENTS IN SUPPORT: Supporters write that, “Economic regions in the United States promote economic development in distressed areas in the country. Currently, the Imperial Valley is grouped with San Diego as the Southern Border Region while the Eastern Coachella and Palo Verde Valleys are grouped together with the Inland Empire as part of the greater Southern California Region. Such division dilutes the interests and opportunities for constituents and developers in the Imperial, the Eastern Coachella, and Palo Verde Valleys.”

ASSEMBLY FLOOR: 72-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas

Prepared by: Sarah Mason / B., P. & E.D. /

8/25/24 13:35:45

**** END ****

 THIRD READING  

Bill No: AB 2757

Author: Garcia (D), et al.

Amended: 6/13/24 in Senate

Vote: 21

SENATE BUS., PROF. & ECON. DEV. COMMITTEE: 13-0, 7/1/24

AYES: Ashby, Nguyen, Alvarado-Gil, Archuleta, Becker, Dodd, Eggman, Glazer, Menjivar, Niello, Roth, Smallwood-Cuevas, Wilk

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/15/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

ASSEMBLY FLOOR: 72-0, 5/22/24 - See last page for vote

SUBJECT: Southeast California Economic Region

SOURCE: Author

DIGEST:

This bill establishes, until January 1, 2035, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

ANALYSIS:

Existing law:

1. Establishes GO-Biz within the Governor's office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (Government Code (GC) §§ 12096 et. seq.)
2. Authorizes GO-Biz to develop content in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development; and Opportunity Zones designated by the United States Treasury. Requires GO-Biz to at least annually convene 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. (GC § 12097.5)
3. Establishes a Blue Ribbon Commission on Lithium Extraction in California (Lithium Valley Commission) composed of 14 members tasked with reviewing, investigating, and analyzing the specified issues relating to lithium extraction and use in California, including but not limited to, the potential economic and environmental impacts to the state resulting from extraction, processing, and production of lithium and lithium-dependent products from geothermal brines and the importance of, and opportunities for, the application of local, state, and federal incentives and investments to facilitate lithium extraction from geothermal brines. Requires the Lithium Commission to submit a report to the Legislature documenting findings. (Public Resources Code § 25232)
4. Establishes the Salton Sea Authority, a joint powers authority formed by the County of Imperial, the County of Riverside, the Coachella Valley Water District, and the Imperial Irrigation District, authorized to form an infrastructure financing district for the purpose of funding the construction of, and purchasing electrical power for, projects for the reclamation and environmental restoration of the Salton Sea. (GC § 53395.9)
5. Creates the Salton Sea Lithium Fund within the State Treasury administered by the Natural Resources Agency into which moneys generated by the lithium excise tax are deposited. Directs the Natural Resources Agency to allocate moneys in the fund for restoration projects and grants for community engagement, public amenity, capital improvement, or community-benefit projects, including projects to help build capacity for meaningful public participation and outreach, at or around the Salton Sea and those communities impacted by the Salton Sea’s restoration and development, among other activities. (Fish and Game Code § 2951)

This bill:

1. Designates a Southeast California Economic Region with boundaries that align with the Southeast California Economic Zone recommended in the Lithium Commission report and with the purpose of better aligning state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region, as well as contributing to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses, using participatory decisionmaking and taking a multijurisdictional approach, which leverages the competencies of public, private, and nonprofit sectors for the region’s transformational future.
2. Requires the Inter-Agency Leadership Team, which consists of representatives from Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz, to prepare a list of state programs that must use the Southeast California Economic Region designation for planning and funding purposes. Specifies that the list must provide guidance to state agencies on how to acknowledge and utilize the Southeast California Economic Region designation and boundaries in program and service delivery, planning activities, and making funding awards.
3. Authorizes the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development that builds upon and aligns with the inclusive planning efforts of previously approved plans and strategies.
4. Makes various findings and declarations and states legislative intent to establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses. A special focus of this work shall be those communities and groups of individuals who have historically been excluded from decisionmaking and the benefits of economic development projects.

Background

In 2022, GO-Biz established the Community and Place-Based Solutions Team (Team) to support local governments, non-profits, community-based organizations, colleges and universities, and other economic development partners in their community development needs. The Team provides key technical assistance for community and economic development planning. According to the Team’s website, place-based economic development strategies are initiatives to encourage economic and community development activity in defined geographic areas. Many communities have started emphasizing place-based strategies to strengthen hyperlocal activities around physical place, economic conditions and social infrastructure. Place-based economic development strategies include a variety of approaches to incentivize investment in disadvantaged communities, including funding for infrastructure & public facilities, job creation & workforce development, affordable & workforce housing, and more. The following comprise the state’s 13 economic regions:

• Greater Sacramento
• Redwood Coast
• North State
• Bay Area
• Northern San Joaquin Valley
• Central San Joaquin Valley
• Central & Eastern Sierra
• Kern County
• Central Coast
• Inland Empire
• Los Angeles County
• Orange County
• Southern Border

Salton Sea and Lithium. Global demand for lithium is expected to grow as much as ten-fold over the next decade, particularly with the increasing use of lithium in batteries in multiple energy and transportation applications. An increase in demand for lithium coupled with advances in processes and technologies for lithium recovery, may provide California with a unique opportunity to foster a more environmentally-sound lithium product coupled with geothermal electricity production. Increased recovery of lithium from geothermal brine is also expected to generate revenue and local in-state economic development opportunities in an economically-depressed area, and the potential to produce a world-class source of battery-grade lithium within California.

California has vast lithium deposits – potentially as much as one third of the world’s current lithium demand according to some industry estimates. Most of these deposits are located in, and around, the Salton Sea. The Salton Sea, California's largest lake, is located in a desert sink in the Southern California counties of Imperial and Riverside. The Salton Sea is 35 miles long and 15 miles wide. The Salton Sea has been shrinking for decades and the impacts create both an environmental and public health disaster with significant costs. The Salton Sea has no outlets and because of its location in an area of high evaporation, has been accumulating soluble salts and insoluble constituents in its bottom sediment for more than 100 years. The Salton Sea is seen as presenting a unique opportunity to extract lithium from the brine that is already being produced by geothermal power plants around the Salton Sea.

Assembly Bill 1657 (E. Garcia, Chapter 271, Statutes of 2020) required the California Energy Commission to convene the Lithium Valley Commission. The Lithium Commission’s report was published in December 2022 and presented a series of key findings and recommendations. The report notes that “The recovery of lithium from geothermal brine using [direct lithium extraction (DLE)], and the growth of a regional economic hub or cluster that includes additional lithium processing and production of mineral compounds in developing Lithium Valley could lead to substantial economic growth in the region. There may also be additional economic activity associated with the recovery of other minerals from geothermal brine and the development of manufacturing plants that use Imperial County lithium and other minerals from recovered from geothermal brine.” According to the report, “…it is imperative that new geothermal lithium recovery and related projects prioritize development and hiring of a local workforce, provide resources to support development of necessary training and educational opportunities, and commit to requirements for strong workforce and labor standards that produce high-quality jobs and careers.”

Among other recommendations, the report specifically recommends the establishment of a Southeast California Economic Zone, which includes Imperial County and Eastern Coachella and Palo Verde Valleys. This regional economic zone should be recognized by federal, state, and local governments, and eligible to compete for funding and investments. The goals of the regional economic zone should balance representation from labor, business, community, government, Tribes, and other stakeholders. With respect to lithium recovery, investments should be prioritized in the communities closest to geothermal power plants and DLE facilities. Incentives should be provided for direct DLE development, and indirect development, and include incentives for childcare, research and development, and construction and non-construction apprenticeships. The report also recommends that the state and county establish a business service center in Imperial County to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, Tribal members, small businesses, and entrepreneurs

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Committee on Appropriations, GO-Biz indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

SUPPORT: (Verified 8/15/24)

Alianza Coachella Valley
Coachella Valley Housing Coalition
Coachella Valley Water District
Coachella; City of
Comite Civico Del Valle
Comite Civico Del Valle, Inc.
County of Imperial
County of Riverside Supervisor V. Manuel Perez
Desert Community College District
Desert Healthcare District and Foundation
Desert Recreation District
Imperial Irrigation District
Imperial Valley Equity & Justice Coalition
International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America
Jobs to Move America
LA Cooperativa Campesina De California
Lideres Campesinas
Lift to Rise
Los Amigos De LA Comunidad, Inc.

Salton Sea Authority
Sierra Club California
UAW Region 6

Universidad Popular

OPPOSITION: (Verified 8/15/24)

None received

ARGUMENTS IN SUPPORT: Supporters write that, “Economic regions in the United States promote economic development in distressed areas in the country. Currently, the Imperial Valley is grouped with San Diego as the Southern Border Region while the Eastern Coachella and Palo Verde Valleys are grouped together with the Inland Empire as part of the greater Southern California Region. Such division dilutes the interests and opportunities for constituents and developers in the Imperial, the Eastern Coachella, and Palo Verde Valleys.”

ASSEMBLY FLOOR: 72-0, 5/22/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas

Prepared by: Sarah Mason / B., P. & E.D. /

8/18/24 9:19:34

**** END ****

SENATE COMMITTEE ON

Senator Anna Caballero, Chair

2023 - 2024 Regular Session

AB 2757 (Garcia) - Southeast California Economic Region

Bill Summary:

AB 2757 would establish, until January 1, 2035, the Southeast California Economic Region, as specified.

Fiscal Impact:

The Governor’s Office of Business and Economic Development (GO-Biz) indicates that it would incur annual General Fund costs of $157,000 to implement the provisions of the bill.

Background:

The State has had various economic development departments through the decades. Prior to 2003, the majority of the State’s economic development programs were housed within the Technology, Trade, and Commerce Agency. The 2003 04 Budget Act abolished both the Agency and state funding for many of its programs designed to encourage economic development.

GO Biz was established statutorily in 2011 to be the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. GO-Biz staff provide a wide range of advisory and coordinating roles across the administration related to economic development. Several units of GO Biz serve as points of contact for businesses considering relocating to or expanding in California. For example, CalOSBA provides resources for small businesses and financial assistance for small business advisory centers. Other units assist international investors, help businesses obtain information about business permits, administer the California Competes Tax Credit Program, and administer the Cannabis Local Equity Grant Program. Additionally, the California Film Commission, Travel and Tourism Commission, and the Infrastructure and Economic Development Bank have been assigned for oversight purposes to GO Biz.

In 2022, GO-Biz established the Community and Place-Based Solutions Team (Team) to support local governments, non-profits, community-based organizations, colleges and universities, and other economic development partners in their community development needs. The Team provides key technical assistance for community and economic development planning. According to the Team’s website, place-based economic development strategies are initiatives to encourage economic and community development activity in defined geographic areas. Many communities have started emphasizing place-based strategies to strengthen hyperlocal activities around physical place, economic conditions and social infrastructure. Place-based economic development strategies include a variety of approaches to incentivize investment in disadvantaged communities, including funding for infrastructure & public facilities, job creation & workforce development, affordable & workforce housing, and more. The following comprise the state’s 13 economic regions: (1) Greater Sacramento, (2) Redwood Coast, (3) North State, (4) Bay Area, (5) Northern San Joaquin Valley, (6) Central San Joaquin Valley, (7) Central & Eastern Sierra, (8) Kern County, (9) Central Coast, (10) Inland Empire, (11) Los Angeles County, (12) Orange County, and (13) Southern Border.

AB 1657, (Garcia, Chapter 271, Statutes of 2020), required the California Energy Commission to convene and establish a Blue Ribbon Commission on Lithium Extraction in California and submit a report to the Legislature. The report recommended the designation of the “Salton Sea Region,” consisting of the Eastern Coachella Valley and Imperial Valley.

Proposed Law:

This bill would, among other things, do the following:

• Designate a Southeast California Economic Region with boundaries that align with the Southeast California Economic Zone recommended in the Lithium Commission report and with the purpose of better aligning state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region, as well as contributing to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses, using participatory decisionmaking and taking a multijurisdictional approach, which leverages the competencies of public, private, and nonprofit sectors for the region’s transformational future.
• Require the Inter-Agency Leadership Team, which consists of representatives from Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz, to prepare a list of state programs that must use the Southeast California Economic Region designation for planning and funding purposes. Specify that the list must provide guidance to state agencies on how to acknowledge and utilize the Southeast California Economic Region designation and boundaries in program and service delivery, planning activities, and making funding awards.
• Authorize the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development that builds upon and aligns with the inclusive planning efforts of previously approved plans and strategies.

Staff Comments:

GO-Biz would require one position to accommodate this bill’s workload, to supplement the three permanent positions assigned to support the existing 13 regions.

-- END --

SENATE COMMITTEE ON

BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT

Senator Angelique Ashby, Chair

2023 - 2024 Regular

Bill No: Hearing Date: July 1, 2024

Subject:

SUMMARY:

Establishes, until January 1, 2035, the Southeast California Economic Region with a purpose to better align state and federal programs, services, and funding within communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and to contribute to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses.

Existing law:

1. Establishes GO-Biz within the Governor's office for the purpose of serving as the lead state entity for economic strategy and marketing of California on issues relating to business development, private sector investment and economic growth. (Government Code (GC) §§ 12096 et. seq.)
2. Authorizes GO-Biz to develop content in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development; and Opportunity Zones designated by the United States Treasury. Requires GO-Biz to at least annually convene 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. (GC § 12097.5)
3. Establishes a Blue Ribbon Commission on Lithium Extraction in California (Lithium Valley Commission) composed of 14 members tasked with reviewing, investigating, and analyzing the specified issues relating to lithium extraction and use in California, including but not limited to, the potential economic and environmental impacts to the state resulting from extraction, processing, and production of lithium and lithium-dependent products from geothermal brines and the importance of, and opportunities for, the application of local, state, and federal incentives and investments to facilitate lithium extraction from geothermal brines. Requires the Lithium Commission to submit a report to the Legislature documenting findings. (Public Resources Code § 25232)
4. Establishes the Salton Sea Authority, a joint powers authority formed by the County of Imperial, the County of Riverside, the Coachella Valley Water District, and the Imperial Irrigation District, authorized to form an infrastructure financing district for the purpose of funding the construction of, and purchasing electrical power for, projects for the reclamation and environmental restoration of the Salton Sea. (GC § 53395.9)
5. Creates the Salton Sea Lithium Fund within the State Treasury administered by the Natural Resources Agency into which moneys generated by the lithium excise tax are deposited. Directs the Natural Resources Agency to allocate moneys in the fund for restoration projects and grants for community engagement, public amenity, capital improvement, or community-benefit projects, including projects to help build capacity for meaningful public participation and outreach, at or around the Salton Sea and those communities impacted by the Salton Sea’s restoration and development, among other activities. (Fish and Game Code § 2951)

This bill:

1. Designates a Southeast California Economic Region with boundaries that align with the Southeast California Economic Zone recommended in the Lithium Commission report and with the purpose of better aligning state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region, as well as contributing to the nation’s defense and security by stimulating local and equitable economic development activities that benefit residents, workers, and businesses, using participatory decisionmaking and taking a multijurisdictional approach, which leverages the competencies of public, private, and nonprofit sectors for the region’s transformational future.
2. Requires the Inter-Agency Leadership Team, which consists of representatives from Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz, to prepare a list of state programs that must use the Southeast California Economic Region designation for planning and funding purposes. Specifies that the list must provide guidance to state agencies on how to acknowledge and utilize the Southeast California Economic Region designation and boundaries in program and service delivery, planning activities, and making funding awards.
3. Authorizes the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development that builds upon and aligns with the inclusive planning efforts of previously approved plans and strategies.
4. Makes findings and declarations about:
5. Efforts to establish a high-road economy centered on inclusive, sustainable, and equitable use of lithium and other minerals and renewable energy resources in the Salton Sea region.
6. The need to improve the region’s current access to economic incentives and states that a more comprehensive and balanced approach recognizes the environmental and public health costs already borne by the people in the region and commits that the buildout of Lithium Valley and its related economic activities include processing, manufacturing, research facilities, workforce development, public health improvements, infrastructure enhancements, and other community benefits.
7. The misassignment of southeastern desert communities as documented in the Lithium Commission report which recommended the designation a “Salton Sea Region,” consisting of the Eastern Coachella and Imperial Valleys.
8. This large area is economically distinct from other state regions, with approximately 150,000 people living and working in its communities and the demographic makeup of the population in the Salton Sea Region is also distinct from its neighboring regions due to the substantially higher percentage of households where Spanish, rather than English, is the primary language.
9. Desert valleys need a definitive economic development designation that supports efficient resource attraction and fosters economic relationships between business, labor, and community.
10. States legislative intent to establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses. A special focus of this work shall be those communities and groups of individuals who have historically been excluded from decisionmaking and the benefits of economic development projects.

FISCAL EFFECT:

This bill is keyed fiscal by Legislative Counsel. According to the Assembly Committee on Appropriations, the bill will result in ongoing General Fund costs, potentially of about $157,000, to GO-Biz for staff to compile the list for the Inter-Agency Leadership Team and to provide support to the new region created by this bill. Currently, GO-Biz has about 20 staff that assist the existing 13 regions of the state.

COMMENTS:

1. Purpose. According to the Author, “There is a government-induced functional disconnect between the Coachella and Palo Verde Valleys and Imperial County. This disconnect has historically limited the Region's access to its fair share of government services and financial resources, which also impacts its competitiveness in attracting private capital. Today, the stakes are even higher. This functional disconnect is now one of the impediments to an inclusive transition to a net-zero emission economy and the realization of the economic and national security benefits of lithium extraction in the region.”

The Author states that “Due to their historically small populations, these desert regions have been attached to regional planning and program areas that lie beyond significant geographic barriers and to communities with few social and economic similarities. For example, the County of Imperial is commonly grouped with the primarily urban County of San Diego and the Coachella Valley with the Inland Empire. However, these southeastern communities have vastly different needs, resources, and demographic profiles from other areas within their government-assigned foster homes. Instead, these southeastern desert communities share many specific social, economic, and environmental challenges that cannot be comprehensively addressed while divided. These hardships include, but are not limited to:

• Environmental and economic implications due to Salton Sea degradation.
• Significant agricultural bases that depend on Colorado River water for irrigation.
• Unemployment rates are consistently higher than the state average.
• Median income rates are consistently lower than the state average.
• Lack of infrastructure to support economic development activities.
• Small and remote population bases with limited basic services.
• Climate change impacts in this desert environment where the number of days temperatures are over 110 degrees is increasing.”

1. 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 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 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.

In 2022, GO-Biz established the Community and Place-Based Solutions Team (Team) to support local governments, non-profits, community-based organizations, colleges and universities, and other economic development partners in their community development needs. The Team provides key technical assistance for community and economic development planning. According to the Team’s website, place-based economic development strategies are initiatives to encourage economic and community development activity in defined geographic areas. Many communities have started emphasizing place-based strategies to strengthen hyperlocal activities around physical place, economic conditions and social infrastructure. Place-based economic development strategies include a variety of approaches to incentivize investment in disadvantaged communities, including funding for infrastructure & public facilities, job creation & workforce development, affordable & workforce housing, and more. The following comprise the state’s 13 economic regions:

• Greater Sacramento
• Redwood Coast
• North State
• Bay Area
• Northern San Joaquin Valley
• Central San Joaquin Valley
• Central & Eastern Sierra
• Kern County
• Central Coast
• Inland Empire
• Los Angeles County
• Orange County
• Southern Border

1. Salton Sea and Lithium. Global demand for lithium is expected to grow as much as ten-fold over the next decade, particularly with the increasing use of lithium in batteries in multiple energy and transportation applications. An increase in demand for lithium coupled with advances in processes and technologies for lithium recovery, may provide California with a unique opportunity to foster a more environmentally-sound lithium product coupled with geothermal electricity production. Increased recovery of lithium from geothermal brine is also expected to generate revenue and local in-state economic development opportunities in an economically-depressed area, and the potential to produce a world-class source of battery-grade lithium within California.

California has vast lithium deposits – potentially as much as one third of the world’s current lithium demand according to some industry estimates. Most of these deposits are located in, and around, the Salton Sea. The Salton Sea, California's largest lake, is located in a desert sink in the Southern California counties of Imperial and Riverside. The Salton Sea is 35 miles long and 15 miles wide. The Salton Sea has been shrinking for decades and the impacts create both an environmental and public health disaster with significant costs. The Salton Sea has no outlets and because of its location in an area of high evaporation, has been accumulating soluble salts and insoluble constituents in its bottom sediment for more than 100 years. The Salton Sea is seen as presenting a unique opportunity to extract lithium from the brine that is already being produced by geothermal power plants around the Salton Sea.

Assembly Bill 1657 (E. Garcia, Chapter 271, Statutes of 2020) required the California Energy Commission to convene the Lithium Valley Commission. The Lithium Commission’s report was published in December 2022 and presented a series of key findings and recommendations. The report notes that “The recovery of lithium from geothermal brine using [direct lithium extraction (DLE)], and the growth of a regional economic hub or cluster that includes additional lithium processing and production of mineral compounds in developing Lithium Valley could lead to substantial economic growth in the region. There may also be additional economic activity associated with the recovery of other minerals from geothermal brine and the development of manufacturing plants that use Imperial County lithium and other minerals from recovered from geothermal brine.” According to the report, “…it is imperative that new geothermal lithium recovery and related projects prioritize development and hiring of a local workforce, provide resources to support development of necessary training and educational opportunities, and commit to requirements for strong workforce and labor standards that produce high-quality jobs and careers.”

Among other recommendations, the report specifically recommends the establishment of a Southeast California Economic Zone, which includes Imperial County and Eastern Coachella and Palo Verde Valleys. This regional economic zone should be recognized by federal, state, and local governments, and eligible to compete for funding and investments. The goals of the regional economic zone should balance representation from labor, business, community, government, Tribes, and other stakeholders. With respect to lithium recovery, investments should be prioritized in the communities closest to geothermal power plants and DLE facilities. Incentives should be provided for direct DLE development, and indirect development, and include incentives for childcare, research and development, and construction and non-construction apprenticeships. The report also recommends that the state and county establish a business service center in Imperial County to facilitate access to business development incentive programs to benefit residents of disadvantaged communities, Tribal members, small businesses, and entrepreneurs.

1. Arguments in Support. Supporters write that, “Economic regions in the United States promote economic development in distressed areas in the country. Currently, the Imperial Valley is grouped with San Diego as the Southern Border Region while the Eastern Coachella and Palo Verde Valleys are grouped together with the Inland Empire as part of the greater Southern California Region. Such division dilutes the interests and opportunities for constituents and developers in the Imperial, the Eastern Coachella, and Palo Verde Valleys.”

SUPPORT AND OPPOSITION:

Support:

Alianza Coachella Valley
Coachella Valley Housing Coalition
Coachella Valley Water District
Coachella; City of
Comite Civico Del Valle
Comite Civico Del Valle, Inc.
County of Imperial
County of Riverside Supervisor V. Manuel Perez
Desert Community College District
Desert Healthcare District and Foundation
Desert Recreation District
Imperial Irrigation District
Imperial Valley Equity & Justice Coalition
International Union, United Automobile, Aerospace, and Agricultural Implement Workers

of America
Jobs to Move America
LA Cooperativa Campesina De California
Lideres Campesinas
Lift to Rise
Los Amigos De LA Comunidad, Inc.

Salton Sea Authority
Sierra Club California
UAW Region 6

Universidad Popular

Opposition:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2757

Author:(Garcia)

As Introduced Ver:February 15, 2024

Majority vote

SUMMARY

Establishes the Lithium Valley Commission to address economic and societal challenges in the Imperial Valley and Eastern Coachella Valley while aiming to maximize benefits from the Lithium Valley renewable energy hub and boost the region's competitiveness for funding and investments.

Major Provisions

1. Designates the Southeast California Economic Region until January 1, 2035, to align state and federal programs, services, and funding for communities affected by lithium and mineral extraction from the Salton Sea, and surrounding clean energy development.
2. Requires the Inter-Agency Leadership Team to compile a list of state programs using the Southeast California Economic Region designation by June 1, 2025.
3. Authorizes the Southeast California Economic Region to facilitate regional collaboration on a strategy-driven economic development plan.
4. Makes legislative findings regarding the necessity of a special statute for Imperial County.
5. Defines the boundaries of the Southeast California Economic Region to include specified unincorporated areas, census-designated places, and incorporated jurisdictions in Imperial and Riverside Counties.

COMMENTS

This bill addresses the grouping of certain southeastern communities with larger regions to include their unique needs. It proposes the establishment of the Southeast California Economic Region to better address these communities' requirements, particularly in relation to the Lithium Valley renewable energy hub. The bill aims to enhance the region's competitiveness for funding, services, and investments. It builds upon previous legislation and recommendations from the Blue Ribbon Commission on Lithium Extraction in California.

According to the Author

[This bill] would establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses in parts of Eastern Riverside County and the Imperial County. This bill would help the region compete for federal, state, and local funding, services, and investments

Arguments in Support

Comite Civico Del Valle, the bill's sponsor states, "Currently, our desert regions have been attached to regional planning and program areas that lie beyond significant geographic barriers. For example, the County of Imperial has been grouped with the primarily

urban County of San Diego and the Coachella Valley with the Inland Empire. However, our southeastern communities have vastly different needs, resources, and demographic profiles from other areas within our foster homes. This shortsighted State government administrative practice dilutes the interests, voices, and opportunities of our people and businesses that comprise the Imperial and Coachella Valleys. AB 2757 will cultivate and stimulate targeted investments by the public and private sectors in California's southeastern desert region. AB 2757 is intended to enhance the county's economic development toolbox by authorizing the Salton Sea Region to more authentically align communities of interest and attract public and private capital more effectively.

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Assembly Appropriations Committee, Ongoing General Fund costs, potentially of about $157,000, to GO-Biz for staff to compile the list for the Inter-Agency Leadership Team and to provide support to the new region created by this bill. Currently, GO-Biz has about 20 staff that assist the existing 13 regions of the state.

VOTES

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

YES: Villapudua, Hoover, Stephanie Nguyen, Petrie-Norris, Ramos, Soria, Wallis

ASM APPROPRIATIONS: 15-0-0

YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Ta, Villapudua

UPDATED

VERSION: February 15, 2024

CONSULTANT: Ashley Bennett / J., E.D., & E. / (916) 319-2090 FN: 0003384

Date of Hearing: May 1, 2024

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 2757

Author:(Garcia) – As Introduced Ver:February 15, 2024

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

SUMMARY:

This bill establishes the Southeast California Economic Region, to include the Coachella Valley and County of Imperial, and various other jurisdictions in the region.

In addition, this bill requires by June 1, 2025, the Inter-Agency Leadership Team, consisting of representatives from Labor and Workforce Development Agency, the Office of Planning and Research, and Governor’s Office of Business and Economic Development (GO-Biz), to prepare a list of state programs that are to use the region designation for planning and funding purposes, among other requirements. The bill repeals its provisions January 1, 2035.

FISCAL EFFECT:

Ongoing General Fund costs, potentially of about $157,000, to GO-Biz for staff to compile the list for the Inter-Agency Leadership Team and to provide support to the new region created by this bill. Currently, GO-Biz has about 20 staff that assist the existing 13 regions of the state.

COMMENTS:

1. Purpose. According to this bill’s findings and declarations, certain southeastern communities have been grouped with other regional planning and program areas because of the communities’ small populations. For example, the County of Imperial has been grouped with County of San Diego and the Coachella Valley with the Inland Empire. However, according to the bill, these southeastern communities have very different needs than the regions they have historically been grouped with. The bill states that the southeastern communities defined in this bill need an economic development designation in order to “capture the full benefits of the Lithium Valley renewable energy development hub.” According to the author, this bill would help the region compete for federal, state, and local funding, services, and investments.
2. Background. The GO-Biz provides technical assistance for community and economic development planning to 13 designed economic regions through its California Community and Place-Based Solutions Team. In addition, GO-Biz participates in the Inter-Agency Leadership Team, which consists of representatives from the Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz. The Inter-Agency Leadership Team administers the Community Economic Resilience Fund Program. The program provides funding to the state’s 13 designed economic regions for economic recovery from the COVID-19 pandemic on California’s industries and communities with an emphasis on California’s transition to a carbon-neutral economy. The 2022 budget act provided $600 million General Fund to the program.

AB 1657, (Garcia), Chapter 271, Statutes of 2020, required the California Energy Commission to convene and establish a Blue Ribbon Commission on Lithium Extraction in California and submit a report to the Legislature. The report recommended the designation of the “Salton Sea Region,” consisting of the Eastern Coachella Valley and Imperial Valley.

This bill establishes the Southeast California Economic Region.

1. Related Legislation. AB 1562 (Garcia) requires, subject to appropriation, GO-Biz to provide technical assistance to local and regional entities on how to establish and maintain regional economic hubs through the designation as an “economic development zone.” The bill was held in this committee.

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

Date of Hearing: April 16, 2024

ASSEMBLY COMMITTEE ON JOBS, ECONOMIC DEVELOPMENT, AND THE ECONOMY

Carlos Villapudua, Chair

ABPCA Bill Id:AB 2757 (

Author:Garcia) – As Introduced Ver:February 15, 2024

SUBJECT: Southeast California Economic Region

SUMMARY: AB 2757 responds to the shared economic and societal challenges in the Imperial Valley and Eastern Coachella Valley by establishing the Lithium Valley Commission. This bill would emphasize the need for a definitive economic development designation to fully harness the benefits of the Lithium Valley renewable energy development hub while aiming to enhance the region's competitiveness for federal, state, and local funding and investments.

Specifically, this bill:

1. Would, until January 1, 2035, designate the Southeast California Economic Region, as specified, and would state that its purpose is to, among other things, better align state and federal programs, services, and funding within those communities most impacted by the extraction and processing of lithium and other minerals from the Salton Sea and additional clean energy development in the surrounding areas within the region.
2. Requires the Inter-Agency Leadership Team, on or before June 1, 2025, to prepare a list of state programs that use the Southeast California Economic Region designation for planning and funding purposes, as specified.
3. Authorizes the Southeast California Economic Region to facilitate regional collaboration on developing a strategy-driven plan for regional economic development, as described.
4. Makes legislative findings and declarations as to the necessity of a special statute for the County of Imperial.
5. Designates the boundaries of the Southeast California Economic Region align with the Southeast California Economic Zone recommended in the Governor’s Blue Ribbon Commission on Lithium Extraction in California report and shall include all of the following: 
6. All unincorporated areas of the County of Imperial, including, but not limited to, one or more of the following census-designated places:
7. Bombay Beach
8. Desert Shores
9. El Centro Naval Air Facility CDP, California
10. Heber
11. Niland
12. Ocotillo
13. Palo Verde
14. Salton City
15. Salton Sea Beach
16. Seeley
17. Winterhaven
18. All unincorporated areas of the County of Riverside, including census-designated places,that lie south of the 33rd parallel north and west of the 116th meridian west.
19. All of the following incorporated jurisdictions:
    1. The City of Brawley
    2. The City of Calexico
    3. The City of Calipatria
    4. The City of El Centro
    5. The City of Holtville
    6. The City of Imperial
    7. The City of Coachella
    8. The City of Indio
    9. The City of Westmorland

EXISTING LAW:

1. Establishes the Governor’s Office of Business and Economic Development, also known as “GO-Biz,” to, among other duties, 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. Authorizes GO-Biz to develop content on its internet website or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including California Promise Zones and California Opportunity Zones. Existing law 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.
3. Establishes the Community Economic Resilience Fund Program, within the Workforce Services Branch of the Employment Development Department, to build an equitable and sustainable economic recovery from the impacts of COVID-19 on California’s industries, workers, and communities, and to provide for the durability of that recovery by fostering long-term economic resilience in the overall transition to a carbon-neutral economy.
4. Requires the Community Economic Resilience Fund Program to be administered by the Labor and Workforce Development Agency, the Office of Planning and Research, and GO-Biz.
5. Existing law refers to these three agencies as the Inter-Agency Leadership Team.

FISCAL EFFECT: Unknown

COMMENTS: Economic regions in the United States promote economic development in distressed areas in the country. Currently, the Imperial Valley is grouped with San Diego as the Southern Border Region while the Eastern Coachella and Palo Verde Valleys are grouped together with the Inland Empire as part of the greater Southern California Region. Such division dilutes the interests and opportunities for constituents and developers in the Imperial, the Eastern Coachella, and Palo Verde Valleys.

Due to their historically small populations, these desert regions have been attached to regional planning and program areas that lie beyond significant geographic barriers. For example, Imperial County has been grouped with primarily urban San Diego County and the Coachella Valley with the Inland Empire. These Southeastern communities have vastly different needs, resources, and demographic profiles. Salton Sea communities face the following hardships, separate from their current economic regional designations:

• Environmental and economic implications due to Salton Sea degradation
• Unemployment rates higher than the state average
• Median income rates lower than the state average
  • • Lack of infrastructure
    • Decreased local revenue

This bifurcation of communities of similar interests and needs in and around the Salton Sea, continues to impede an inclusive transition to an equitable net-zero emission economy that is inclusive and mindful of its surrounding population and its unique challenges.

A sustained effort is underway to establish a high-road economy centered on inclusive, sustainable, and equitable use of lithium and other minerals and renewable energy resources in the Salton Sea region. Full deployment of these renewable power resources could provide a once-in-a-generation opportunity to support transformative economic growth within this historically disinvested area, bringing family-sustaining jobs and real economic opportunities to California’s most underserved residents.

Author Statement: “AB 2757 would establish the Southeast California Economic Region, which will facilitate collaboration with state, federal, regional, and local organizations, entities, and governments on issues of mutual interest that advance the economy and quality of life of residents and businesses in parts of Eastern Riverside County and the Imperial County. This bill would help the region compete for federal, state, and local funding, services, and investments.”

Argument in Support: Comite Civico Del Valle, the bill’s sponsor states, “Currently, our desert regions have been attached to regional planning and program areas that lie beyond significant geographic barriers. For example, the County of Imperial has been grouped with the primarily

urban County of San Diego and the Coachella Valley with the Inland Empire. However, our southeastern communities have vastly different needs, resources, and demographic profiles from other areas within our foster homes. This shortsighted State government administrative practice dilutes the interests, voices, and opportunities of our people and businesses that comprise the Imperial and Coachella Valleys. AB 2757 will cultivate and stimulate targeted investments by the public and private sectors in California’s southeastern desert region. AB 2757 is intended to enhance the county’s economic development toolbox by authorizing the Salton Sea Region to more authentically align communities of interest and attract public and private capital more effectively.

Argument in Opposition: None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

Alianza Coachella Valley

Coachella Valley Housing Coalition

Coachella Valley Water District

Comite Civico Del Valle

County of Imperial

County of Riverside Supervisor V. Manuel Perez

Desert Community College District

Desert Healthcare District and Foundation

Desert Recreation District

Imperial Valley Equity & Justice Coalition

Jobs to Move America

LA Cooperativa Campesina De California

Lift to Rise

Los Amigos De LA Comunidad, INC.

UAW Region 6

Universidad Popular

Opposition

None on file.

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