Assembly BillChaptered/SignedPublic Resources
AB 2163: Energy: Strategic Clean Energy and Critical Mineral Development Zones.
What AB 2163 does, verified September 29, 2026
The bill aims to support large-scale clean energy production and energy-intensive industrial development in regions with significant deposits or identified production potential of critical minerals. The state energy commission will identify and designate strategic clean energy and critical mineral development zones, which will be reviewed every 5 years. State agencies must give priority consideration to projects and investments within designated zones that support clean energy production or energy-intensive industrial development. The governor's office of business and economic development will coordinate with the energy commission and other agencies to support site readiness, infrastructure development, and attracting investment within designated zones. Violations of the public utilities act or related orders will be considered a crime. The bill requires counties to submit requests for…
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Last action: Chaptered by Secretary of State - Chapter 583, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 583, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 15, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug. 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 6992.). |
| Aug. 24, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 1,360 words
Assembly Bill No. 2163
CHAPTER 583
An act to add Section 25216.7 to the Public Resources Code, relating to energy.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2163, Jeff Gonzalez. 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 Governor’s 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 Governor’s 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 Governor’s 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 Governor’s 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.
The people of the State of California do enact as follows:
SECTION 1.
Section 25216.7 is added to the Public Resources Code, to read:25216.7.
(a) (1) The commission, in consultation with the Governor’s Office of Business and Economic Development and other relevant state agencies, shall identify and designate Strategic Clean Energy and Critical Mineral Development Zones.(2) A Strategic Clean Energy and Critical Mineral Development Zone shall consist only of geographic areas located within the jurisdictional boundaries of the county submitting the request for designation pursuant to subdivision (c).
(3) It is the intent of the Legislature that the designation process established by this section be applied on a statewide basis to identify zones capable of supporting large-scale energy production, critical mineral development, and related industries.
(b) A proposed zone may be designated as a Strategic Clean Energy and Critical Mineral Development Zone if the proposed zone satisfies the criteria described in paragraph (1) and two or more of the additional criteria described in paragraph (2), as follows:
(1) The proposed zone is located within the county submitting the request for designation and the county has been 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.
(2) (A) The county submitting the request for designation contains baseload renewable electrical generation facilities, including geothermal resources, with a combined capacity of at least 250 megawatts.
(B) The county submitting the request for designation has identified geothermal resource potential exceeding 1,000 megawatts, as estimated by the commission, the United States Geological Survey, or other recognized authorities.
(C) The proposed zone is located in proximity to existing high-voltage electrical transmission infrastructure of 230 kilovolts or greater capable of supporting large-scale renewable energy generation or industrial load.
(D) The proposed zone is the subject of an adopted or proposed regional planning effort, including a specific plan or programmatic environmental review, that evaluates renewable energy production, critical mineral extraction, advanced manufacturing, or related industries.
(3) The criteria described in paragraphs (1) and (2) shall be based on resources, infrastructure, or planning efforts located within the jurisdictional boundaries of the county submitting the request for designation.
(c) (1) The county in which a proposed zone is located may submit a request for designation of a Strategic Clean Energy and Critical Mineral Development Zone and the county board of supervisors may, by resolution, authorize the request for designation. Cities, joint powers authorities composed of public agencies, and regional planning agencies established pursuant to state law may participate in the preparation of the request for designation and may be identified as supporting entities within the submission. The county submitting the request for designation shall serve as the lead coordinating entity for activities related to any designated Strategic Clean Energy and Critical Mineral Development Zone, including coordination with participating local jurisdictions and state agencies. A request for designation shall include sufficient documentation demonstrating that the proposed zone satisfies subdivision (b).
(2) If a proposed zone crosses the jurisdictional boundaries of multiple counties, those counties may jointly submit a request for designation of that zone if state or federal agencies have identified each of the counties as containing significant deposits or identified production potential of critical minerals used in battery, clean energy, or advanced manufacturing supply chains within the proposed zone. A jointly submitted request shall be submitted with a statement from all of the counties that they agree to submit the request jointly.
(d) Counties may submit requests for designation on an ongoing basis. The commission shall approve or deny a submitted request for designation within 180 days of receiving a complete submission. The commission may also independently identify and designate qualifying proposed zones consistent with subdivision (b).
(e) The commission shall not accept multiple requests for designation covering substantially the same geographic area unless those requests are submitted jointly by the relevant public agencies.
(f) The commission shall review the designations of Strategic Clean Energy and Critical Mineral Development Zones at least every five years and may update those designations as appropriate based on changes in energy resources, infrastructure, or economic development planning.
(g) (1) State agencies administering programs related to economic development, advanced manufacturing, workforce development, or critical mineral supply chains shall give priority consideration, to the extent consistent with law, to projects, infrastructure investments, and technical assistance located within designated Strategic Clean Energy and Critical Mineral Development Zones that support large-scale clean energy production or energy-intensive industrial development.
(2) The Governor’s Office of Business and Economic Development shall consider designated Strategic Clean Energy and Critical Mineral Development Zones when administering programs intended to support advanced manufacturing, clean technology industries, energy storage supply chains, and other energy-intensive industries.
(3) The Governor’s Office of Business and Economic Development may coordinate with the commission and other relevant state agencies to support site readiness, infrastructure development, and attracting investment within designated Strategic Clean Energy and Critical Mineral Development Zones.
(4) In carrying out this subdivision, the state agencies and the Governor’s Office of Business and Economic Development shall give priority to projects that will provide for the payment of prevailing wages, the employment of apprentices from state-approved programs, and the use of a skilled and trained workforce.
Text of AB 2163 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions