AB 2516 — California Grid Manufacturing Initiative.

Summary

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 determine and provide appropriate forms of state assistance to address identified delays with critical electricity grid components, as defined, to incentivize new or existing in-state manufacturing of critical electricity grid components, and to provide support to joint procurement initiatives. 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 provide assistance to projects that establish or expand manufacturing capacity in California for 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 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 any bonds to be deposited into 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 a specified reason.

Bill Text

• Amended 06/25/26 - Amended Senate Current pdf June 25, 2026
• Amended 04/13/26 - Amended Assembly pdf April 13, 2026
• Amended 03/24/26 - Amended Assembly pdf March 24, 2026
• Introduced 02/20/26 - Introduced pdf February 20, 2026
• AB2516 View text html

Action History

1. August 13, 2026

   In committee: Held under submission.

2. August 03, 2026

   In committee: Referred to APPR. suspense file.

3. June 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.

4. June 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.

5. June 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.

6. June 10, 2026

   Referred to Coms. on E., U & C. and B. P. & E.D.

7. May 27, 2026

   In Senate. Read first time. To Com. on RLS. for assignment.

8. May 26, 2026

   Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 13.)

9. May 18, 2026

   Read second time. Ordered to third reading.

10. May 14, 2026

    Joint Rule 62(a), file notice suspended. (Page 5030.)

11. May 14, 2026

    From committee: Do pass. (Ayes 12. Noes 2.) (May 14).

12. May 13, 2026

    In committee: Set, first hearing. Referred to APPR. suspense file.

13. April 21, 2026

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 21). Re-referred to Com. on APPR.

14. April 14, 2026

    Re-referred to Com. on E.D., G., & H.I.

15. April 13, 2026

    Read second time and amended.

16. April 09, 2026

    From committee: Amend, and do pass as amended and re-refer to Com. on E.D., G., & H.I. (Ayes 15. Noes 1.) (April 8).

17. March 25, 2026

    Re-referred to Com. on U. & E.

18. March 24, 2026

    From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.

19. March 16, 2026

    Referred to Coms. on U. & E. and E.D., G., & H.I.

20. February 21, 2026

    From printer. May be heard in committee March 23.

21. February 20, 2026

    Read first time. To print.

Sponsors

• Cottie Petrie-Norris · Primary

Votes

Subjects