(i) The lead agency has prepared and publicly circulated a cumulative health risk assessment of the project and held a public hearing to discuss the assessment at least 60 days before the lead agency approves the project.
(ii) The project does not result in any significant effects relating to noise, traffic, air quality, hazards, hazardous materials, public health, greenhouse gas emissions, or water quality.
(iii) The project is not located within a health protection zone, as defined in Section 3280, or otherwise within 3,200 feet of a sensitive receptor, as defined in Section 3280. The measurement, for purposes of the sensitive receptor, shall be made from the property line of the facility to the property line of the sensitive receptor.
(iv) The project is not located in or within 1,000 feet of a disadvantaged community.
(v) The project does not involve the storage, use, or discharge of extremely hazardous gases or chemicals above California’s accidental release program reporting thresholds pursuant to Article 2 (commencing with Section 25531) of Chapter 6.95 of Division 20 of the Health and Safety Code.
(vi) The project does not use, collect, involve the incineration of, or discharge perfluoroalkyl and polyfluoroalkyl substances into any surface water, groundwater, publicly owned treatment works, or land.
(vii) The project does not compromise the reliability of electrical or water services to existing customers, including, but not limited to, disadvantaged communities.
(viii) The project applicant demonstrates high road employment standards and certifies to the lead agency that it will maintain those standards in the development, construction, and operation of the facility.
(ix) The project applicant has entered into a bona fide community benefits agreement that includes enforceable commitments to environmental mitigations, high road employment standards, and job access for individuals with employment barriers. The specific terms in the bona fide community benefits agreement shall also include funding for or direct implementation of specific community improvements or amenities, which may include, but are not limited to, park and playground equipment, urban greening, enhanced safety crossings, paving roads and bicycle paths, reductions in or credits for residential utility bills, and annual contributions to a nonprofit or community-based organization that awards grants to organizations delivering community-based services and amenities.
(x) The project applicant has provided a legally binding commitment to comply with all of the following requirements with respect to the initial construction of the facility and subsequent maintenance that is contracted out to a contractor in the construction industry:
(I) (ia) For a project undertaken by a public agency, the project is a public work for which prevailing wages shall be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(ib) Except as provided in sub-subclause (ic), for a project undertaken by a public agency, an entity shall not be prequalified or shortlisted or awarded a contract by the public agency to perform any portion of the project unless the entity provides an enforceable commitment to the public agency that the entity and its contractors and subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.
(ic) Sub-subclause (ib) shall not apply if the project will be covered by a project labor agreement that will bind all contractors and subcontractors at every tier performing work on the project to use a skilled and trained workforce and provide for enforcement of that obligation through an arbitration procedure.
(II) For a project undertaken by a private entity, the project applicant shall do all of the following:
(ia) Certify to the lead agency that either of the following is true:
(Ia) The entirety of the project is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(Ib) If the project is not in its entirety a public work, all construction workers employed on the project will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773.9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the project is subject to this sub-sub-subclause, then for those portions of the project that are not a public work, all of the following shall apply:
(iA) The project applicant shall ensure that the prevailing wage requirement is included in all contracts for the performance of all construction and maintenance work.
(iB) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work on the project or contract at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate.
(iC) (IA) Except as provided in sub-sub-sub-sub-subclause (IC), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided therein.
(IB) Except as provided in sub-sub-sub-sub-subclause (IC), the obligation of the contractors and subcontractors at every tier to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, or by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code.
(IC) Sub-sub-sub-sub-subclauses (IA) and (IB) do not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the project or contract and provides for enforcement of that obligation through an arbitration procedure.
(iD) 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 shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code.
(ib) Certify to the lead agency that a skilled and trained workforce will be used to perform all construction work on the project. All of the following requirements shall apply to the project:
(Ia) The project applicant shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct and maintain the project.
(Ib) Every contractor and subcontractor at every tier shall use a skilled and trained workforce to construct and maintain the project.
(Ic) (iA) Except as provided in sub-sub-sub-subclause (iB), the project applicant shall provide to the lead agency, on a monthly basis while the project or contract is being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the local government pursuant to this subclause 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. A project applicant that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the project using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund, established pursuant to Section 1771.3 of the Labor Code.
(iB) Sub-sub-sub-subclause (iA) shall not apply if all contractors and subcontractors at every tier performing work on the project are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure.
(ic) Certify to the lead agency that it has entered into a labor peace agreement. This sub-subclause shall apply only when the state has a proprietary interest in the project or the state is providing direct financial assistance to the project or tax credits or tax preferences in excess of two million five hundred thousand dollars ($2,500,000).
(B) (i) The State Energy Resources Conservation and Development Commission shall develop and make available to lead agencies guidelines for evaluating whether a project applicant demonstrates high road employment standards as required pursuant to subparagraph (A).
(ii) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the guidelines developed pursuant to this subparagraph.
(C) (i) On or before January 1, 2029, the Office of Land Use and Climate Innovation shall report to the Legislature on projects that were exempted from this division pursuant to this paragraph. This report shall include, but not be limited to, a list of the projects for semiconductor manufacturing facilities that have been approved for development in the state since June 30, 2025, the locations of each of these projects, identification of which of these projects are in or adjacent to a disadvantaged community, and whether each project was approved with an exemption, negative declaration, or final environmental review.
(ii) A report required by this subparagraph shall be submitted in compliance with Section 9795 of the Government Code.
(D) For purposes of this paragraph, the following definitions apply:
(i) “Bona fide community benefits agreement” means a private agreement between the project applicant and independent stakeholders from the surrounding communities, and that is informed by meaningful engagement and outreach to residents of the surrounding communities. Stakeholders that receive financial remuneration from a project applicant shall not be considered independent.
(ii) “Disadvantaged community” means a community identified pursuant to Section 39711 of the Health and Safety Code, a disadvantaged unincorporated community as defined in Section 65302.10 of the Government Code, or a census tract receiving the highest 15 percent of CalEnviroScreen pollution burden percentile scores.
(iii) “Enforceable commitments” means specific mechanisms built into agreements that ensure that the parties have remedies to resolve disputes, such as binding arbitration.
(iv) “High road employment standards” means employment practices and standards that include, but are not limited to, the following:
(I) Provision of comparatively good wages and benefits, relative to the industry, occupation, and labor market in which participating workers are employed.
(II) Payment of workers at or above local or regional living wage standards as well as payment at or above regional prevailing wage standards where those standards exist for the occupations in question.
(III) Commitment to investing in employee training, growth, and development, including through comprehensive workforce training programs or apprenticeship programs.
(IV) Adoption of mechanisms to include worker voice and agency in the workplace.
(V) Safe and healthy working conditions.
(VI) Consistent compliance with workplace laws and regulations, including proactive efforts to remedy past problems.
(v) “Individual with employment barriers” has the same meaning as set forth in Section 14005 of the Unemployment Insurance Code.
(vi) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the project applicant’s business. This agreement means that the project applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the project applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the project applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
(vii) “Project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code.
(viii) “Skilled and trained workforce” has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.
(E) This paragraph shall become inoperative on January 1, 2030.