AB 2163: Energy: Strategic Clean Energy and Critical Mineral Development Zones.

Existing law, the Warren-Alquist State Energy Resources Conservation and Development Act, establishes the State Energy Resources Conservation and Development Commission and prescribes the authorities, duties, and responsibilities of the commission pertaining to energy matters.

This bill would require the commission, in consultation with the Governors Office of Business and Economic Development and other relevant state agencies, to identify and designate Strategic Clean Energy and Critical Mineral Development Zones. The bill would authorize the county in which a proposed zone is located to submit a request for designation and would authorize the county board of supervisors to, by resolution, authorize the request for designation. The bill would authorize multiple counties to submit a request for designation if a proposed zone crosses the jurisdictional boundaries of the counties, as provided. The bill would require the commission to approve or deny a complete submission within 180 days. The bill would require a zone to consist only of geographic areas located within the jurisdictional boundaries of the county submitting the request for designation and would require that certain criteria be satisfied, including that the zone be in an area identified by state or federal agencies as containing significant deposits or identified production potential of critical minerals used in battery, clean energy, or advanced manufacturing supply chains, as specified. The bill would require the commission to review the designated zones at least every 5 years and authorize the commission to update the designated zones as appropriate based on changes in energy resources, infrastructure, or economic development planning.

The bill would require state agencies administering programs related to economic development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects, infrastructure investments, and technical assistance located within designated zones that support large-scale clean energy production or energy-intensive industrial development. The bill would require the Governors Office of Business and Economic Development to consider designated zones when administering programs intended to support advanced manufacturing, clean technology industries, energy storage supply chains, and other energy-intensive industries. The bill would authorize the Governors Office of Business and Economic Development to coordinate with the commission and other relevant state agencies to support site readiness, infrastructure development, and attracting investment within designated zones. The bill would require the Governors Office of Business and Economic Development and state agencies administering programs related to economic development, advanced manufacturing, workforce development, or critical mineral supply chains to give priority consideration to projects that will provide for the payment of prevailing wages, the employment of apprentices from state-approved projects, and the use of a skilled and trained workforce.