Assembly BillPassed first housePublic Resources
AB 1016: Power facility and site certifications: thermal powerplants: geothermal resources.
What AB 1016 does, verified December 7, 2025
This bill would allow the state energy resources conservation and development commission to exempt thermal powerplants from certification requirements, but only for projects that meet specific criteria. These criteria include the use of exclusively geothermal resources, a lead agency for environmental review, and compliance with workforce requirements. The exemption would be granted until January 1, 2030, and would require the local governmental agency to be the lead agency for CEQA certification. The commission would also be required to find that no substantial adverse impact on the environment or energy resources would result from the project.
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
4Second ChamberCurrent
5GovernorPending
6ChapteredPending
Last action: In committee: Set, first hearing. Hearing canceled at the request of author. (2025-05-23)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions19 total · showing 5
| Jun. 26, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun. 19, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C. |
| Jun. 04, 2025 | Referred to Coms. on E., U & C. and E.Q. |
| May. 23, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 1. Page 1656.) |
| May. 23, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
Latest bill textAmended version, June 19, 2025 · 3,562 words
| Amended IN Senate June 19, 2025 |
| Amended IN Assembly May 06, 2025 |
| Amended IN Assembly April 24, 2025 |
| Amended IN Assembly March 25, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 1016
| Introduced by Assembly Member Jeff Gonzalez |
February 20, 2025 |
An act to amend Section 25519 of, to add Section 25541.3 to, and to add and repeal Section 25541.2 of, the Public Resources Code, relating to energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1016, as amended, Jeff Gonzalez. Power facility and site certifications: thermal powerplants: geothermal resources.
Existing law vests the State Energy Resources Conservation and Development Commission with the exclusive jurisdiction to certify the construction of a thermal powerplant, as defined. Existing law prohibits a person from constructing a thermal powerplant unless that person obtains certification from the commission. Existing law authorizes the commission to exempt from the certification requirement a thermal powerplant with a generating capacity of up to 100 megawatts and modifications to existing generating facilities that do not add capacity in excess of 100 megawatts, if the commission finds that no substantial adverse impact on the environment or energy resources will result from the project. Existing law makes the commission the lead agency for purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) for all projects that require certification and for projects that are exempted by the commission.
This bill would additionally authorize the commission to exempt from the certification requirement, only until January 1, 2030, a thermal powerplant that generates electricity using exclusively geothermal resources and is found by the commission to meet specified criteria, including that the person proposing the powerplant files an application on or before June 30, 2029, with the local governmental agency that has land use and related jurisdiction over the area in which the powerplant is located, that the local governmental agency will be the lead agency for the project and will require a discretionary permit that is subject to environmental review pursuant to CEQA, that the person proposing the powerplant certifies that specified skilled and trained workforce requirements will be followed if the exemption is granted, and that the powerplant has a net generating capacity of 50 to 150 megawatts or that modifications are being made to the powerplant to add capacity resulting in total net generating capacity of 50 to 150 megawatts. megawatts, and for any plan for multiple geothermal powerplants that use at least one common infrastructure component and those powerplants, in total, have a net generating capacity of 50 or more megawatts. Upon the commission granting an exemption, the bill would require the local governmental agency to be the lead agency for purposes of CEQA to certify the site and related facility, as provided. The bill would would, until January 1, 2030, make the local governmental agency that has land use and related jurisdiction over the area of the proposed site and related facility the lead agency pursuant to CEQA for any project that the commission exempts from the certification requirement and that generates electricity using geothermal resources as provided.
The people of the State of California do enact as follows:
SECTION 1.
Section 25519 of the Public Resources Code is amended to read:25519.
(a) To obtain certification for a site and related facility, an application for certification of the site and related facility shall be filed with the commission. The application shall be in a form prescribed by the commission and shall be for a site and related facility that has been found to be acceptable by the commission pursuant to Section 25516, or for an additional facility at a site that has been designated a potential multiple-facility site pursuant to Section 25514.5 and found to be acceptable pursuant to Sections 25516 and 25516.5. An application for an additional facility at a potential multiple-facility site shall be subject to the conditions and review specified in Section 25520.5. An application may not be filed for a site and related facility, if there is no suitable alternative for the site and related facility that was previously found to be acceptable by the commission, unless the commission has approved the notice based on the one site as specified in Section 25516.(b) Notwithstanding any other provision of this section, the commission, upon its own motion or in response to the request of any party, may require the applicant to submit any information, document, or data that it determines is reasonably necessary to make any decision on the application.
(c) (1) Except as provided in paragraph (2), the commission shall be the lead agency as provided in Section 21165 for all projects that require certification pursuant to this chapter and for projects that are exempted from such certification pursuant to Section 25541. Unless the commission’s regulatory program governing site and facility certification and related proceedings are certified by the Natural Resources Agency pursuant to Section 21080.5, an environmental impact report shall be completed within one year after receipt of the application. If the commission prepares a document or documents in the place of an environmental impact report or negative declaration under a regulatory program certified pursuant to Section 21080.5, any other public agency that must make a decision that is subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), on a site or related facility, shall use the document or documents prepared by the commission in the same manner as they would use an environmental impact report or negative declaration prepared by a lead agency.
(2) For a project that the commission exempts, pursuant to Section 25541.2, from the requirement to obtain certification pursuant to this chapter and that generates electricity using geothermal resources, as defined in Section 6903, the local governmental agency that has land use and related jurisdiction over the area of the proposed site and related facility shall, notwithstanding any other law, require a discretionary permit that is subject to environmental review pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)) for each project and shall be the lead agency for purposes of Section 21165. This paragraph shall become inoperative on January 1, 2030.
(d) If the site and related facility specified in the application is proposed to be located in the coastal zone, the commission shall transmit a copy of the application to the California Coastal Commission for its review and comments.
(e) If the site and related facility specified in the application is proposed to be located in the Suisun Marsh or the jurisdiction of the San Francisco Bay Conservation and Development Commission, the commission shall transmit a copy of the application to the San Francisco Bay Conservation and Development Commission for its review and comments.
(f) Upon receipt of an application, the commission shall forward the application to local governmental agencies having land use and related jurisdiction in the area of the proposed site and related facility. Those local agencies shall review the application and submit comments on, among other things, the design of the facility, architectural and aesthetic features of the facility, access to highways, landscaping and grading, public use of lands in the area of the facility, and other appropriate aspects of the design, construction, or operation of the proposed site and related facility.
(g) Upon receipt of an application, the commission shall cause a summary of the application to be published in a newspaper of general circulation in the county in which the site and related facilities, or any part thereof, designated in the application, is proposed to be located. The commission shall transmit a copy of the application to each federal and state agency having jurisdiction or special interest in matters pertinent to the proposed site and related facilities and to the Attorney General.
(h) Local and state agencies having jurisdiction or special interest in matters pertinent to the proposed site and related facilities shall provide their comments and recommendations on the project within 180 days of the date of filing of an application.
(i) The public advisor shall require that adequate notice is given to the public and that the procedures specified by this division are complied with.
(j) For any proposed site and related facility requiring a certificate of public convenience and necessity, the commission shall transmit a copy of the application to the Public Utilities Commission and request the comments and recommendations of the Public Utilities Commission on the economic, financial, rate, system reliability, and service implications of the proposed site and related facility. If the commission requires modification of the proposed facility, the commission shall consult with the Public Utilities Commission regarding the economic, financial, rate, system reliability, and service implications of those modifications.
(k) The commission shall transmit a copy of the application to any governmental agency not specifically mentioned in this act, but which it finds has any information or interest in the proposed site and related facilities, and shall invite the comments and recommendations of each agency. The commission shall request any relevant laws, ordinances, or regulations that an agency has promulgated or administered.
(l) An application for certification of any site and related facilities shall contain a listing of every federal agency from which any approval or authorization concerning the proposed site is required, specifying the approvals or authorizations obtained at the time of the application and the schedule for obtaining any approvals or authorizations pending.
SEC. 2.
Section 25541.2 is added to the Public Resources Code, to read:25541.2.
(a) The commission may exempt from this chapter a thermal powerplant that generates electricity using exclusively geothermal resources, as defined in Section 6903, if the commission finds that all of the following criteria are met:(1) A person proposing the thermal powerplant files an application, on or before June 30, 2029, with the local governmental agency that has land use and related jurisdiction over the area in which the thermal powerplant is located.
(2) Notwithstanding any other law, the local governmental agency that has land use and related jurisdiction over the area of the proposed site and related facility will be the lead agency for the project for purposes of, and require a discretionary permit that is subject to environmental review pursuant to, the California Environmental Quality Act (Division 13 (commencing with Section 21000)).
(3) The thermal powerplant is located in a county that has an approved geothermal element, as defined in Section 25133, or a geothermal and renewable element, in the county’s general plan plan, and the element requires compliance with Section 25541.3 for a geothermal powerplant that has a net generating capacity of 50 to 150 megawatts, inclusive, and for modifications to a geothermal powerplant that add capacity resulting in a total net generating capacity of 50 to 150 megawatts, inclusive. inclusive, and for any plan for multiple geothermal powerplants that use at least one common infrastructure component and those powerplants, in total, have a net generating capacity of 50 or more megawatts.
(4) The thermal powerplant has a net generating capacity of 50 to 150 megawatts, inclusive, or modifications to the thermal powerplant that add capacity resulting in a total net generating capacity of 50 to 150 megawatts, inclusive.
(5) No prior project exempted pursuant to this section and approved by the local governmental agency that has land use and related jurisdiction over the area in which the thermal powerplant is located has resulted, after environmental review pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)), in any significant adverse impact on public health, the environment, or energy resources.
(6) The person proposing the thermal powerplant certifies to the commission that the requirements of Section 25541.3 will be followed if the exemption is granted.
(b) Upon the commission granting an exemption pursuant to subdivision (a), the local governmental agency shall be the lead agency for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000)) to certify the site and related facility, whether the application proposes a new site and related facility or a change or addition to an existing facility.
(c) This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
SEC. 3.
Section 25541.3 is added to the Public Resources Code, to read:25541.3.
(a) (1) All contractors and subcontractors performing initial and subsequent construction, alteration, demolition, installation, repair, or maintenance work for a facility exempted pursuant to Section 25541.2 shall use a skilled and trained workforce to perform all onsite work within an apprenticeable occupation in the building and construction trades. The owner or operator of the facility shall include this requirement in all contracts for performance of the work.(2) The requirement specified in paragraph (1) to use a skilled and trained workforce applies to each individual contractor’s and subcontractor’s onsite workforce.
(b) For purposes of paragraph (2) of subdivision (b) of Section 3075 of the Labor Code, a facility covered by this section shall be considered in determining whether existing apprenticeship programs do not have the capacity, or have neglected or refused, to dispatch sufficient apprentices to qualified employers who are willing to abide by the applicable apprenticeship standards.
(c) This section does not apply to the employees of the owner or operator of the facility or prevent the owner or operator from using its own employees to perform any work that has not been assigned to contractors while the employees of the contractor are present and working.
(d) An apprenticeship program approved by the chief may enroll, with advanced standing, applicants with relevant prior work experience at a facility that is subject to this section, in accordance with the approved apprenticeship standards of the program.
(e) The criteria of paragraph (9) of subdivision (h) and of subparagraph (A) of paragraph (10) of subdivision (h) do not apply to either of the following:
(1) To the extent that the contractor has requested qualified workers from the local hiring halls that dispatch workers in the apprenticeable occupation and, due to workforce shortages, the contractor is unable to obtain sufficient qualified workers within 48 hours of the request, Saturdays, Sundays, and holidays excepted. This section does not prevent contractors from obtaining workers from any source.
(2) To the extent that compliance is impracticable because an emergency requires immediate action to prevent harm to public health or safety or to the environment, but the criteria applies as soon as the emergency is over or it becomes practicable for contractors to obtain a qualified workforce.
(f) This section does not make the construction, alteration, demolition, installation, repair, or maintenance work at a facility that is subject to this section a public work, within the meaning of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. This section does not preclude the use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
(g) (1) The owner or operator of the facility shall provide to the commission, on a monthly basis, a report demonstrating compliance with this section. The required monthly report demonstrating compliance with this section shall include the full name of, and identify the apprenticeship program name, location, and graduation date of, each worker relied on to satisfy the apprenticeship graduation percentage requirements of this section. A monthly report provided to the commission pursuant to this section shall be a public record under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall be open to public inspection.
(2) (A) If the Labor Commissioner, or the Labor Commissioner’s designee, determines after an investigation that a contractor or subcontractor failed to use a skilled and trained workforce in accordance with this section, the contractor or subcontractor responsible for the violation shall forfeit, as a civil penalty to the state, not more than five thousand dollars ($5,000) per month of work performed in violation of this section. A contractor or subcontractor that commits a second or subsequent violation of this section within a three-year period shall forfeit, as a civil penalty to the state, not more than ten thousand dollars ($10,000) per month of work performed in violation of this section.
(B) The amount of the civil penalty may be reduced or waived by the Labor Commissioner if the amount of the civil penalty would be disproportionate to the severity of the violation. The Labor Commissioner shall consider, in setting the amount of the civil penalty, all of the following circumstances:
(i) Whether the violation was intentional.
(ii) Whether the contractor or subcontractor has committed other violations of this section or of the Labor Code.
(iii) Whether, upon notice of the violation, the contractor or subcontractor took steps to voluntarily remedy the violation.
(iv) The extent or severity of the violation.
(C) The Labor Commissioner, or the Labor Commissioner’s designee, shall issue a civil wage and penalty assessment, in accordance with Section 1741 of the Labor Code, upon assessing a civil penalty pursuant to subparagraph (A). Review of a civil wage and penalty assessment issued under this paragraph may be requested in accordance with Section 1742 of the Labor Code. The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code, apply to a civil wage and penalty assessment issued pursuant to this subparagraph.
(D) The determination of the Labor Commissioner as to the amount of the civil penalty imposed under this paragraph shall be reviewable by the Director of Industrial Relations only for an abuse of discretion.
(3) This subdivision does not apply if all construction and maintenance work on the project is covered by a project labor agreement that requires the use of a skilled and trained workforce and provides for the enforcement of that obligation through an arbitration procedure.
(4) For purposes of this subdivision, a “project labor agreement” means a prehire collective bargaining agreement that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Section 158(f) of Title 29 of the United States Code.
(h) For purposes of this section, all of the following definitions apply:
(1) “Apprenticeable occupation” means an occupation for which the chief has approved an apprenticeship program pursuant to Section 3075 of the Labor Code.
(2) “Building and construction trades” has the same meaning as in Section 3075.5 of the Labor Code.
(3) “Chief” means the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations.
(4) “Construction,” “alteration,” “demolition,” “installation,” “repair,” and “maintenance” have the same meanings as defined in Sections 1720 and 1771 of the Labor Code. “Construction” includes initial construction work and subsequent construction and construction maintenance work following initial completion that is contracted out to a contractor in the construction industry.
(5) “Graduate of an apprenticeship program” means either of the following:
(A) An individual who has been issued a certificate of completion under the authority of the California Apprenticeship Council or the chief for completing an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code.
(B) An individual who has completed an apprenticeship program located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(6) “Onsite work” does not include catalyst handling and loading, chemical cleaning, or inspection and testing that was not within the scope of a prevailing wage determination issued by the Director of Industrial Relations as of January 1, 2013.
(7) “Prevailing hourly wage rate” means the general prevailing rate of per diem wages, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, but does not include shift differentials, travel and subsistence, or holiday pay. Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing does not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker.
(8) “Registered apprentice” means an apprentice registered in an apprenticeship program approved by the chief pursuant to Section 3075 of the Labor Code, who is performing work covered by the standards of that apprenticeship program and receiving the supervision required by the standards of that apprenticeship program.
(9) “Skilled and trained workforce” means a workforce that meets both of the following criteria:
(A) All of the workers are either registered apprentices or skilled journeypersons.
(B) At least 60 percent of the skilled journeypersons are graduates of an apprenticeship program for the applicable occupation.
(10) “Skilled journeyperson” means a worker who meets both of the following criteria:
(A) The worker either graduated from an apprenticeship program for the applicable occupation that was approved by the chief, or has at least as many hours of on-the-job experience in the applicable occupation that would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the chief.
(B) The worker is being paid a rate at least equivalent to the prevailing hourly wage rate for a journeyperson in the applicable occupation and geographic area.
Text of AB 1016 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions