Energy.

Assembly Member Garcia's industrial decarbonization legislation expands California's Climate Catalyst Revolving Loan Fund Program to include projects that reduce emissions from industrial heat and power usage. The bill authorizes the Infrastructure and Economic Development Bank to provide financial assistance for industrial heat pump and thermal energy storage initiatives while establishing new requirements for project approval.

The legislation creates an Industrial Facilities Thermal Energy Storage Program within the state's Long-Duration Energy Storage Program to support industrial decarbonization through financial incentives. Projects must exceed current emissions control standards and include project labor agreements that mandate prevailing wages, targeted local hiring, and expanded apprenticeship opportunities. Facilities with previous air permit violations must develop pollution remediation plans addressing ecological and public health impacts.

The bill renames and enhances the Industrial Grid Support program to become the Industrial Decarbonization and Improvement of Grid Operations Program. Under the revised program, preference for financial assistance goes to projects that benefit the electrical grid during peak demand, maximize greenhouse gas reductions, improve air quality in under-resourced communities, and establish community benefit agreements. Recipients cannot receive more than 20 percent of allocated funds, and projects may need to surrender emissions allowances equivalent to their reductions to align with state climate goals.