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AB 2516: California Grid Manufacturing Initiative.

California · Assembly · 2025–2026 Regular Session · last verified August 15, 2026

What AB 2516 does, verified August 15, 2026

The California Grid Manufacturing Initiative, proposed in AB 2516, mandates GO-Biz's energy unit to coordinate with other state entities to establish the initiative. This includes identifying and procuring critical electricity grid components and incentivizing their in-state manufacturing. Public utilities must submit projections of their purchasing needs for these components by January 1, 2028, and regularly thereafter. If centralized procurement is deemed necessary, participating utilities can commit to purchase from the initiative under certain conditions. The bill authorizes GO-Biz to issue requests for proposals or other competitive solicitations, provide financial assistance for manufacturing capacity expansion, enter into production joint ventures with private suppliers, and offer bond financing. The Public Utilities Commission must ensure that any cost savings a…

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Last action: In committee: Held under submission. (2026-08-13)Alert me

Author and sponsors

Asm. Cottie Petrie-NorrisAuthor · California State Assembly

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Recent actions22 total · showing 5

Aug. 13, 2026	In committee: Held under submission.
Aug. 03, 2026	In committee: Referred to APPR. suspense file.
Jun. 29, 2026	From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (June 29). Re-referred to Com. on APPR.
Jun. 25, 2026	From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
Jun. 24, 2026	From committee: Do pass and re-refer to Com. on B. P. & E.D. (Ayes 13. Noes 3.) (June 24). Re-referred to Com. on B. P. & E.D.

Full action history, 17 earlier actionsConnect Plus

Latest bill textAmended version, June 25, 2026 · 5,209 words

Amended IN Senate June 25, 2026

Amended IN Assembly April 13, 2026

Amended IN Assembly March 24, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2516

Introduced by Assembly Member Petrie-Norris

February 20, 2026

An act to add Article 8 (commencing with Section 12100.80) to Chapter 1.6 of Part 2 of Division 3 of Title 2 of, and to add Article 12 (commencing with Section 63049.80) to Chapter 2 of Division 1 of Title 6.7 of, the Government Code, relating to electricity, and making an appropriation therefor.

LEGISLATIVE COUNSEL'S DIGEST

AB 2516, as amended, Petrie-Norris. California Grid Manufacturing Initiative.

Existing law establishes the Governor’s Office of Business and Economic Development (GO-Biz) within the Governor’s office and requires GO-Biz to 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. Existing law creates within GO-Biz the Energy Unit to accelerate the planning, financing, and execution of critical energy infrastructure projects, as specified.

This bill would require the Energy Unit, in coordination with other specified state entities, to establish the California Grid Manufacturing Initiative. The bill would require the Energy Unit to ~~identify and procure~~ determine and provide appropriate forms of state assistance to address identified delays with critical electricity grid components, as defined, ~~and~~ to incentivize new or existing in-state manufacturing of critical electricity grid ~~components.~~ components, and to provide support to joint procurement initiatives.

This bill would require the Energy Unit to develop a process for each public utility, as defined, on or before January 1, 2028, and regularly thereafter, to submit a projection of its purchasing needs for critical electricity grid components for which the public utility has not entered into a purchase agreement and for which the public utility affirmatively seeks the assistance of the Energy Unit in coordinating resources and leveraging purchasing power. The bill would provide that, if the Energy Unit determines that centralized procurement is warranted for a critical electrical grid component, a participating public utility may, prior to the issuance of a solicitation by the Energy Unit for that component, submit to the Energy Unit the conditions under which the public utility commits to purchase those components from the initiative, as provided. Under the bill, if a procurement by the Energy Unit satisfies the conditions submitted by a public utility, the public utility’s commitment to purchase the component from the initiative would be binding, as provided. By imposing new duties on local publicly owned electric utilities, the bill would impose a state-mandated local program.
This bill would require the Public Utilities Commission, as soon as practicable, and in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, to develop a process to identify critical electricity grid components and to assess the statewide need for critical electricity grid components for the next 10-year period. The bill would require the assessment to include identification of specific strategies to reduce delays and ratepayer costs associated with the procurement of critical electricity grid components. The bill would require the Public Utilities Commission to determine, for each critical electricity grid component, whether requiring electrical corporations to engage in the joint procurement of the critical electricity grid component would further the purposes of the bill, and if the commission makes that determination, and also determines that electrical corporations would benefit from the joint procurement, the bill would authorize the Public Utilities Commission to require electrical corporations to engage in a joint procurement to fulfill the projected purchasing needs of each participating electrical corporation for the critical electricity grid component, as provided.
This bill would require electrical corporations that are required to engaged in a joint procurement pursuant to the bill to, not more than 12 months following the imposition of the requirement, take certain actions, including engaging in a joint cooperative process for the sourcing and negotiation of joint purchase agreements for the purchase of critical electricity grid components.

This bill would authorize ~~the Energy Unit to issue requests for proposals or other competitive solicitations to procure critical electricity grid components, as provided, and would authorize~~ the Energy Unit to provide ~~financial~~ assistance to projects that establish or expand manufacturing capacity in California for ~~electrical~~ critical electricity grid components, as specified. The bill would also authorize the Energy Unit to enter into production joint ventures with qualified private suppliers, as provided, and to provide bond financing and other assistance.

The bill would authorize the Public Utilities Commission to authorize the recovery of costs incurred under the initiative only to the extent it determines those costs are just and reasonable, cost-effective, and aligned with state energy policy, as provided. To the extent the joint procurement results in costs below prevailing market prices for critical electricity grid components, the bill would require the commission to ensure that the difference is credited to ratepayers, as provided.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because a violation of a commission action implementing certain requirements of the bill would be a crime, this bill would impose a state-mandated local program.

Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) within GO-Biz and, among other things, authorizes the I-Bank to make loans, issue bonds, and provide financial assistance for various types of projects that qualify as economic development or public development facilities, as provided.

This bill would create the California Grid Manufacturing Initiative Revolving Fund in the State ~~Treasury, and the Manufacturing Incentive Account and the Procurement Account within the revolving fund,~~ Treasury for the purpose of providing financial assistance pursuant to the initiative. The bill would make the moneys in the revolving fund continuously appropriated for expenditure in accordance with the initiative. The bill would authorize the I-Bank, on behalf of the Energy Unit, to issue revenue bonds to finance procurement and manufacturing of critical electricity grid components, and would authorize the I-Bank to provide financial assistance, including financial assistance from the proceeds of the revenue bonds, to a participating party, as defined, in connection with the financing or refinancing of a project to establish or expand manufacturing capacity for critical electricity grid components. The bill would require the I-Bank to meet and confer with the Energy Unit for eligible projects and would provide that final authority to provide financial support to an eligible project resides with the Energy Unit. The bill would require the proceeds of ~~the~~ any bonds to be deposited into ~~the respective accounts~~ the revolving fund and used exclusively for the purposes of the initiative. By establishing a continuously appropriated fund, the bill would make an appropriation.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
~~This bill would provide that no reimbursement is required by this act for specified reasons.~~
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: YES

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) California’s electric system depends on timely access to large power transformers, distribution transformers, and other critical electricity grid components to ensure reliability, affordable rates, wildfire resilience, emergency response, and the achievement of the state’s clean energy goals.

(b) National and global supply chain constraints have resulted in extended lead times, elevated costs, and limited availability of critical electricity grid components.

(c) Fragmented procurement and uncoordinated demand signaling by utilities and public agencies can increase market uncertainty and may inhibit investment in manufacturing capacity.

(d) Coordinated demand aggregation, centralized procurement, advance market commitments, and targeted manufacturing incentives can reduce risk, lower costs, and expand supply for critical electricity grid components that are forecast in California energy planning processes.

(e) In certain circumstances, market forces alone are insufficient to ensure adequate and timely supply, necessitating state-enabled intervention, including public-private partnerships.

(f) ~~Manufacturing~~ Increased in-state manufacturing of critical electricity grid components holds the potential to supply a significant base of high-skill, high-paying jobs in California and equip the electrical grid for mass electrification.

SEC. 2.

Article 8 (commencing with Section 12100.80) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:

Article 8. California Grid Manufacturing Initiative

12100.80.

The following definitions apply for purposes of this article:

(a) “Commission” means the Public Utilities Commission.
~~(a)~~

(b) “Critical electricity grid components” means electricity grid components for which supply constraints, extended lead times, elevated costs, or other limitations to procurement are causing delays to the construction, upgrade, or maintenance of transmission and distribution infrastructure.

(c) “Electrical corporation” has the same meaning as defined in Section 218 of the Public Utilities Code.
~~(b)~~

(d) “Electricity grid components” means ~~equipment~~ equipment, materials, or devices used in the transmission, distribution, or storage of electricity, including, but not limited to, transformers, cables, wires, circuit breakers, reconductors, and switchgears.

~~(c)~~

(e) “Energy Unit” means the Energy Unit created within the Governor’s Office of Business and Economic Development pursuant to Section 12100.110.

~~(d)~~

(f) “High road employment” means employment that is consistent with the job quality standards and employment practices set forth in subdivision (s) of Section 14005 of the Unemployment Insurance Code.

~~(e)~~

(g) “Initiative” means the California Grid Manufacturing Initiative established pursuant to Section 12100.81.

~~(f)~~

(h) “Public utility” means an electrical corporation as defined in Section 218 of the Public Utilities Code or a local publicly owned electric utility as defined in Section 224.3 of the Public Utilities Code.

12100.81.

The Energy Unit, in coordination with the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Independent System Operator, public utilities, and the California Infrastructure and Economic Development Bank, shall establish the California Grid Manufacturing Initiative to implement the purposes of this article.

12100.82.

The Energy Unit shall do ~~both~~ all of the following:

~~(a)Identify and procure critical electricity grid components, which includes, but is not limited to:~~
~~(1)Identifying critical electricity grid components in coordination with public utilities.~~

~~(2)Determining the appropriate form or forms of state assistance to address identified delays, including, but not limited to, centralized procurement on behalf of public utilities.~~

(3)Where centralized procurement is warranted, serve as the state’s central entity for aggregating demand and coordinating the procurement of critical electricity grid components on behalf of participating public utilities.

(a) Determine and provide appropriate forms of state assistance to address identified delays with critical electricity grid components.

(b) Incentivize new or existing in-state manufacturing of electricity grid components.

(c) Provide support to joint procurements.

12100.83.
(a)Consistent with the process and schedule adopted pursuant to subdivision (b), the Energy Unit shall identify electricity grid components for which central procurement would further the purposes of this article.
(b)(1)The Energy Unit shall develop a process for each public utility, on or before January 1, 2028, and regularly thereafter, to submit a projection of its purchasing needs for critical electricity grid components for which the public utility has not entered into a purchase agreement and for which the public utility affirmatively seeks the assistance of the Energy Unit in coordinating resources and leveraging purchasing power.
~~(2)The projection shall include all of the following:~~
~~(A)Component types and specifications.~~
~~(B)Quantities needed of each of the component types.~~
~~(C)Delivery timelines.~~
(c)Based on the projections, the Energy Unit shall determine the statewide aggregate purchasing needs for critical electricity grid components, which shall serve as the basis for procurement and manufacturing incentives pursuant to this article.
(d)The Energy Unit shall also determine other forms of state assistance, separate from central procurement, to support the purchasing of critical electricity grid components, including but not limited to, upstream supply chain intervention, technical assistance, and regulatory coordination.
12100.84.
(a)If the Energy Unit determines that centralized procurement is warranted for a critical electrical grid component identified pursuant to Section 12100.83, a participating public utility may, prior to the issuance of a solicitation under Section 12100.85, submit to the Energy Unit the conditions under which the public utility commits to purchase those components from the initiative, unless the initiative is unable to provide the requested electricity grid components. Conditions may include, but are not limited to, any of the following:
~~(1)A maximum price or not-to-exceed cost threshold.~~
~~(2)Technical specifications and performance requirements.~~
~~(3)Delivery timelines.~~
~~(4)Other reasonable commercial terms.~~
(b)If a procurement conducted pursuant to Section 12100.85 satisfies the conditions submitted by a public utility pursuant to subdivision (a), the public utility’s commitment to purchase the component from the initiative shall be binding, and the associated offtake obligation shall apply regardless of whether the equipment is utilized.
12100.85.
(a)The Energy Unit is authorized to issue requests for proposals or other competitive solicitations to procure critical electricity grid components based on the state’s aggregate purchasing needs for critical electricity grid components, as identified pursuant to subdivision (c) of Section 12100.83.
(b)In evaluating proposals received through a solicitation, consistent with the conditions submitted by participating public utilities pursuant to Section 12100.84, the Energy Unit shall consider all of the following, prioritizing proposals in this order:
~~(1)Timeliness of delivery.~~
~~(2)Cost-effectiveness, as determined in consultation with the Public Utilities Commission and public utilities, as appropriate.~~
~~(3)Extent of support for long-term, high road employment in the state.~~
(c)Prior to each solicitation, the Energy Unit, in coordination with the Public Utilities Commission, the State Energy Resources Conservation and Development Commission, the Independent System Operator, and the California Infrastructure and Economic Development Bank, shall evaluate whether the market can meet demand in a timely and cost-effective manner without intervention.
(d)If the Energy Unit determines, in coordination with the entities listed in subdivision (c), that the market cannot meet demand for a critical electricity grid component in a timely and cost-effective manner without intervention, the Energy Unit shall notify public utilities as soon as practicable.

12100.83.
(a) (1) As soon as practicable, the commission, in consultation with the State Energy Resources Conservation and Development Commission and the Independent System Operator, shall, in a new or existing proceeding, develop a process to identify critical electricity grid components and to assess the statewide need for critical electricity grid components for the next 10-year period. The assessment shall include identification of specific strategies to reduce delays and ratepayer costs associated with the procurement of critical electricity grid components.
(2) The commission shall, at least once every five years, update the identification and assessment specified in paragraph (1).
(b) To eliminate redundancy and increase efficiency, the process adopted pursuant to subdivision (a) shall incorporate, and not duplicate, any other planning process of the commission.

12100.84.
(a) (1) For each critical electricity grid component identified pursuant to subdivision (a) of Section 12100.83, the commission shall determine whether requiring electrical corporations to engage in the joint procurement of the critical electricity grid component would further the purposes of this article.
(2) (A) If the commission determines that engaging in the joint procurement of a critical electricity grid component furthers the purposes of this article and electrical corporations would benefit from the joint procurement of the critical electricity grid component, the commission may require electrical corporations to engage in a joint procurement to fulfill the projected purchasing needs of each participating electrical corporation for the critical electricity grid component through a joint purchase agreement. The projected purchasing needs shall be subject to the review and approval of the commission.
(B) A local publicly owned electric utility may participate in the joint procurement of the critical electricity grid component with the electrical corporations.
(3) The commission shall seek to ensure that a joint procurement maximizes the reduction of purchasing costs and delays, and addresses the need for the critical electricity grid components over an extended planning horizon, to the extent prudent.
(4) If electrical corporations are required to engaged in a joint procurement of critical electricity grid component pursuant to subparagraph (A) of paragraph (2), not more than 12 months following the imposition of the requirement, the electrical corporations shall do all of the following:
(A) Engage in joint and cooperative consultations between and among the electrical corporations and suppliers of critical electricity grid components to determine contract requirements.
(B) Engage in a joint cooperative process for the sourcing and negotiation of joint purchase agreements, including negotiation of performance, price, quantity, and specifications, for the purchase of critical electricity grid components.
(C) Jointly submit proposed purchase agreements to the commission for its approval.
(D) Engage in other joint and collaborative activities pertaining to the collaboration and joint contracting for purchase of critical electricity grid components as the electrical corporations may determine is necessary for implementation of joint procurements, subject to approval by the commission.
(b) The commission shall require electrical corporations to take actions the commission deems necessary to effectuate the goals of this article in soliciting and procuring critical electricity grid components pursuant to a joint procurement.
(c) (1) An electrical corporation shall not be liable for the purchase commitments of another electrical corporation, or local publicly owned utility that elects to participate, under a joint purchase agreement.
(2) Notwithstanding the requirements of paragraph (1), a joint purchase agreement may provide for equipment sharing arrangements consistent with federal law, with the approval of the commission.
(d) (1) The commission shall work with electrical corporations to ensure that the implementation of a joint procurement does not cause delays to the procurement of critical energy grid components.
(2) In furtherance of paragraph (1), the commission may authorize an electrical corporation to continue using existing procurement processes following the implementation of a joint procurement, as the commission determines necessary.
(e) The activities conducted by an electrical corporation pursuant to this section shall be undertaken at the express direction and under the supervision of the commission in furtherance of this article.
(f) (1) In consultation with the commission and electrical corporations, and with local publicly owned electric utilities that elect to participate, the Energy Unit shall offer assistance to qualifying suppliers pursuant to Section 12100.85 in connection with a joint procurement.
(2) In consultation with the commission and relevant stakeholders, the Energy Unit shall determine and provide other forms of state assistance to support the purchasing of critical electricity grid components in connection with a joint procurement, including, but not limited to, upstream supply chain intervention, technical assistance, and regulatory coordination.
(g) (1) The commission may authorize recovery of costs incurred under this article only to the extent it determines those costs are just and reasonable, consistent with Section 451 of the Public Utilities Code, cost effective, and aligned with state energy policy.
(2) To the extent the joint procurement results in costs below prevailing market prices for the critical electricity grid components, the commission shall ensure that the difference is credited to ratepayers in a manner consistent with Section 451 of the Public Utilities Code.

~~12100.86.~~12100.85.

(a) The Energy Unit may provide ~~financial~~ assistance to projects that establish or expand manufacturing capacity in California for critical electricity grid components. The assistance may include, but is not limited to, any of the following:

(b)The Energy Unit shall work with suppliers to identify barriers to production that can be addressed through regulatory assistance, incentives available through existing programs, or any other forms of assistance.
(1) Engaging local public and private actors relevant to project development success.
(2) Supporting efforts of the project applicant to secure necessary permits and other relevant authorities.
(3) Leveraging and coordinating all relevant state incentives and supply chain facilitation services to ensure timely and cost-effective acquisition of physical components of the project.
~~(c)~~

(b) In ~~providing financial~~ selecting projects to receive assistance pursuant to this article, the Energy Unit shall evaluate projects based on all of the following criteria:

(1) The extent to which the project will further the state’s clean energy goals, including by reducing delays and costs.

(2) The extent to which the project will create long-term high road employment in California.

~~(d)Incentives~~

(c) Provision of assistance, including financial assistance if any, shall be conditioned on measurable public benefits, including high road job creation, community benefits, workforce development, affordability, and capacity expansion.

12100.86.

(a) The Energy Unit is hereby authorized and empowered to enter into production joint ventures with qualified private suppliers pursuant to this section.

~~(e)~~

(b) The Energy Unit shall issue one or more requests for qualifications to identify entities that are qualified and willing to enter into production joint ventures with the state to manufacture ~~electricity grid components identified pursuant to subdivision (a)~~ in California.

~~(f)~~

(c) A request for qualifications issued pursuant to this section shall solicit information, including, but not limited to, all of the following:

(1) Evidence of the experience, competency, capability, and capacity to complete and operate manufacturing projects of similar size, scope, or complexity, including financial condition, relevant technical expertise, and demonstrated management competency.

(2) High road employment commitments, history of compliance with workplace laws and regulations, and safety record.

~~(g)~~

(d) The Energy Unit, after evaluating the responses to the request for qualifications, may do any of the following:

(1) Select one or more qualified suppliers to enter negotiations for production joint ~~ventures as described in Section 12100.87.~~ ventures.

(2) Invite selected respondents to submit detailed proposals or bids.

(3) Decline to proceed if market conditions improve.

~~(h)~~

(e) The Energy Unit is not obligated to enter into a joint venture or provide incentives to an entity that responds to a request for qualifications.

(f) Production joint ventures shall be structured to provide for all of the following:
(1) Shared ownership, equity stakes, or other legally permissible participation by the state.
(2) Establishment or expansion of manufacturing facilities within California.
(3) Lower cost for finished products as compared to prevailing market prices.
(g) Production joint ventures may be structured to provide for either or both of the following:
(1) Allocation of design, construction, financing, and operational responsibilities to the private partner.
(2) Use of special purpose vehicles to carry out joint venture activities.
(h) The Energy Unit may provide, subject to availability, all of the following:
(1) Low-cost loans, credit enhancements, bond financing, or any other form of financial assistance through the California Infrastructure and Economic Development Bank, as provided in Section 12100.87.
(2) Advance purchase commitments or mandatory offtake agreements.
(3) Site access, leasing of public land, or permitting assistance.
(4) Any other incentives determined by the Energy Unit.
(i) The Energy Unit shall ensure that production joint ventures are awarded through a transparent, competitive, and merit-based process, and are structured to protect public funds, ensure high road jobs, and deliver community benefits.
(j) In accordance with the conflict-of-interest provisions of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)), the Energy Unit shall adopt conflict-of-interest policies governing employees and contractors involved in procurement decisions and joint venture negotiations pursuant to this article.

12100.87.
~~(a)The Energy Unit is authorized to enter into production joint ventures with qualified private suppliers selected through the request for qualifications process described in Section 12100.86.~~
~~(b)Production joint ventures shall be structured to provide for all of the following:~~
~~(1)Shared ownership, equity stakes, or other legally permissible participation by the state.~~
~~(2)Establishment or expansion of manufacturing facilities within California.~~
~~(3)Lower cost for finished products as compared to prevailing market prices.~~
~~(c)Production joint ventures may be structured to provide for either or both of the following:~~
~~(1)Allocation of design, construction, financing, and operational responsibilities to the private partner.~~
~~(2)Use of special purpose vehicles to carry out joint venture activities.~~
~~(d)The Energy Unit may provide, subject to availability, all of the following:~~
~~(1)Bond financing through the California Infrastructure and Economic Development Bank, as provided in Section 12100.88.~~
~~(2)Low-cost loans or loan guarantees.~~
~~(3)Advance purchase commitments or mandatory offtake agreements.~~
~~(4)Site access, leasing of public land, or permitting assistance.~~
~~(e)Private suppliers or joint ventures shall submit operating plans that articulate how they will meet cost recovery and procurement goals of the Energy Unit.~~
(f)The Energy Unit shall ensure that production joint ventures are awarded through a transparent, competitive, and merit-based process, and are structured to protect public funds, ensure high road jobs, and deliver community benefits.
(g)In accordance with the conflict of interest provisions of the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)), the Energy Unit shall adopt conflict-of-interest policies governing employees and contractors involved in procurement decisions and joint venture negotiations pursuant to this article.

~~12100.88.~~12100.87.

The California Infrastructure and Economic Development Bank, on behalf of the Energy Unit, may ~~issue revenue bonds to finance procurement and manufacturing of~~ provide financial assistance in connection with projects that establish or expand manufacturing capacity in California for critical electricity grid components, as provided in Article 12 (commencing with Section 63049.80) of Chapter 2 of Division 1 of Title 6.7.

12100.89.
(a)The Public Utilities Commission may authorize recovery of costs incurred under this article only to the extent it determines those costs are just and reasonable, consistent with Section 451 of the Public Utilities Code, cost-effective, and aligned with state energy policy.
(b)To the extent the procurement through the initiative results in costs below prevailing market prices for grid components, the Public Utilities Commission shall ensure that the difference is credited to ratepayers in a manner consistent with Section 451 of the Public Utilities Code.

~~12100.90.~~12100.88.

The Energy Unit shall submit an annual report to the Legislature detailing ~~purchasing needs, procurements,~~ its efforts undertaken in support of the initiative, manufacturing capacity added, ratepayer costs and savings, job benefits, and fiscal impacts related to the implementation of this article. The annual reports shall be submitted in compliance with Section 9795.

~~12100.91.~~12100.89.

If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications, which shall remain in full force and effect.

SEC. 3.

Article 12 (commencing with Section 63049.80) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:

Article 12. California Electricity Grid Financing

63049.80.

For purposes of this article, the following terms have the following meanings:

~~(a)“Account” means either of the following:~~
~~(1)The Manufacturing Incentive Account established pursuant to Section 63049.81.~~

~~(2)The Procurement Account established pursuant to Section 63049.81.~~

~~(b)~~

(a) “California Grid Manufacturing Initiative” means the California Grid Manufacturing Initiative established pursuant to Article 8 (commencing with Section 12100.80) of Chapter 1.6 of Part 2 of Division 3 of Title 2.

(b) “Eligible project” means any project selected by the Energy Unit to receive assistance pursuant to Section 12100.85 or a production joint venture entered into pursuant to Section 12100.86.

(c) “Energy Unit” means the Energy Unit created within the Governor’s Office of Business and Economic Development pursuant to Section 12100.110.

(d) “Participating party” means any public or private entity, profit or nonprofit, engaged in an eligible project.
~~(d)~~

(e) “Revolving fund” means the California Grid Manufacturing Initiative Revolving Fund established pursuant to Section 63049.81.

63049.81.

~~(a)~~There is hereby created the California Grid Manufacturing Initiative Revolving Fund in the State ~~Treasury, and the Manufacturing Incentive Account and the Procurement Account within the revolving fund,~~ Treasury for the purpose of providing financial assistance pursuant to the California Grid Manufacturing Initiative and, notwithstanding Section 13340, moneys in the revolving fund ~~and the accounts~~ are hereby continuously appropriated, without regard to fiscal years, ~~to the Energy Unit~~ for expenditure in accordance with the California Grid Manufacturing Initiative.

(b)Moneys generated for purposes of Section 12100.87, including proceeds from the sale of bonds to support manufacturing of electricity grid components pursuant to Section 63049.82, shall be deposited into the Manufacturing Incentive Account.
(c)Moneys generated for purposes of Section 12100.85, including proceeds from the sale of bonds to support the California Grid Manufacturing Initiative’s procurement of electricity grid components and revenues generated from the sale of those components to public utilities, shall be deposited into the Procurement Account.

63049.82.

(a) The bank, on behalf of the Energy Unit, may issue taxable or tax-exempt revenue bonds pursuant to Chapter 5 (commencing with Section 63070) to finance procurement and manufacturing of critical electricity grid components pursuant to the California Grid Manufacturing Initiative. The proceeds of ~~the~~ any bonds shall be deposited into ~~the respective accounts, as provided in Section 63049.81,~~ an account in the revolving fund and used exclusively for the purposes of the California Grid Manufacturing Initiative. Bond proceeds may also be used to fund necessary reserves, capitalized interest, or costs of issuance.

(b) Bonds issued under this article shall not be deemed to constitute a debt or liability of the state or of any political subdivision of the state or a pledge of the faith and credit of the state or of any political subdivision, other than the bank, but shall be payable solely from the revolving fund and the assets of the revolving fund, and the security provided by the revolving fund. All bonds issued under this article shall contain on the face of the bonds a statement to that effect.

63049.83.
(a) The bank may provide financial assistance, including financial assistance from the proceeds of the bonds issued pursuant to Section 63049.82, to a participating party in connection with the financing or refinancing of an eligible project.
(b) (1) The bank shall meet and confer with the Energy Unit for eligible projects.
(2) The bank shall respond to requests from the Energy Unit and collaborating agencies to evaluate and consult on the credit and financial aspects of eligible projects.
(3) Final authority to provide financial support to an eligible project shall reside with the Energy Unit, and the Energy Unit shall direct the bank, at its discretion.

SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

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