AB 1280 California Assembly · 2025-2026 Regular Session

Energy.

Summary
(1) The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development, governed by a board of directors. The act, 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. The Climate Catalyst Revolving Fund Act of 2020 authorizes the I-bank, under the Climate Catalyst Revolving Fund Program, to provide financial assistance to any eligible sponsor or participating party in connection with the financing or refinancing of a climate catalyst project, either directly to the sponsor or participating party or to a lending or financial institution, as provided. The act requires the I-Bank to adopt climate catalyst financing plans for specified categories of climate catalyst projects, as specified, after meeting and conferring with the appropriate consulting agencies for those specified categories of climate catalyst projects. This bill would authorize the I-bank to provide financial assistance in connection with the financing or refinancing of a new category of climate catalyst projects, those that enable the decarbonization of industrial facilities' use of heat and power, including, but not limited to, industrial heat pump and thermal energy storage projects, as specified, with the State Energy Resources Conservation and Development Commission and the State Air Resources Board as consulting agencies. The bill would specify conditions to be satisfied regarding these projects. The bill would make implementation of the financial assistance for this new category of climate catalyst projects contingent upon an appropriation by the Legislature. (2) Existing law requires the commission to establish and implement the Long-Duration Energy Storage Program to provide financial incentives for eligible projects, including thermal storage, that have power ratings of at least one megawatt and are capable of reaching a target of at least 8 hours of continuous discharge of electricity in order to deploy innovative energy storage systems to the electrical grid for purposes of providing critical capacity and grid services. Existing law requires the commission to give preference to eligible projects that have certain impacts, including those that increase the use of renewable energy. This bill would establish and implement an Industrial Facilities Thermal Energy Storage Program within the Long-Duration Energy Storage Program to provide financial incentives for eligible projects to decarbonize industrial facilities' use of heat and power, as specified. The bill would include thermal energy storage, as defined, rather than thermal storage, as an eligible project. The bill would require the commission to give preference to eligible projects that increase the use of renewable energy through reducing curtailment and shifting power usage from peak to off-peak times, rather than to all projects that increase the use of renewable energy. The bill would prohibit, after January 1, 2027, the commission from providing these financial incentives to projects that involve the performance of work by contractors in the construction industry unless that work is performed under a project labor agreement, as provided. (3) Existing law requires the commission to establish and administer the Industrial Grid Support and Decarbonization Program to provide financial incentives for the implementation of eligible projects at eligible industrial facilities to provide significant benefits to the electrical grid, reduce emissions of greenhouse gases, achieve the state's clean energy goals, and exceed compliance requirements. Existing law subjects projects to certain conditions of eligibility for these financial incentives. Existing law requires the commission, in providing financial incentives, to give preference to certain types of projects. This bill would rename the program the Industrial Decarbonization and Improvement of Grid Operations Program and would add, among its purposes, reducing emissions of health-harming pollutants. The bill would revise some of the conditions for eligible projects. The bill would make, after January 1, 2027, projects that involve the performance of work by contractors in the construction industry ineligible for these financial incentives unless the work is performed under a project labor agreement, as provided. The bill would require, after January 1, 2027, an eligible project for a facility that has a record of air permit violations to separately develop a plan for pollution remediation, including for ecological and public health harms. The bill would require the commission to also give preference, in providing financial incentives, to an eligible project that is located in an under-resourced community, as defined, and an eligible project that develops a community benefit fund or agrees to pursue a community benefits agreement with the surrounding community and other affected stakeholders.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Aug 2025
Assembly Passage
Jun 2025
Senate Passage
Sep 2025
Signed into Law
Oct 2025
Introduced Feb 21, 2025 Signed Oct 6, 2025
Maddy AI version diff · 7 comparisons

What changed between versions

09/05/25 - Amended Senate 09/12/25 - Enrolled · 3 edits · Sep 12, 2025
MINOR
This is a transition from the Amended Senate version to the Enrolled version of AB 1280. The changes are entirely technical and procedural: removal of amendment history, line numbers, and page headers; addition of passage dates and Governor's receipt block; cleanup of legislative markup notation (converting '2026, 2027' strikethrough/insertion notation to the clean date '2027'); and removal of the coauthor credit and vote/appropriation line. No substantive policy changes are visible in the portion of the diff provided.
TECHNICAL

All instances of the amendment markup 'January 1, 2026, 2027' (indicating 2026 was deleted and 2027 inserted) are cleaned up to simply read 'January 1, 2027' in the enrolled text. This reflects a date change from 2026 to 2027 for when project labor agreement requirements and pollution remediation plan requirements take effect, but that substantive change was made in a prior amendment - this version merely presents it without markup.

Amendment history lines (AMENDED IN SENATE SEPTEMBER 5, 2025; AMENDED IN ASSEMBLY JUNE 2, 2025; etc.), line numbers, page headers/footers, coauthor credit, and the vote/appropriation/fiscal committee summary line were all removed as part of standard enrollment formatting.

Enrollment-specific elements added: 'Passed the Assembly September 10, 2025,' 'Passed the Senate September 9, 2025,' Chief Clerk and Secretary signatures, and a blank line for the Governor's receipt date and time.

Floor votes · Senate Sep 9, 2025 · Assembly Jun 4, 2025

How they voted

370
Passed · 3 other
Total votes 40
Sep 9, 2025
D Democratic30
30 Yea
100% Yea
R Republican10
7 Yea 3
70% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
30
Key actions
13
Committee
11
Amendments
7
Oct 6, 2025
Signed into law
Approved by the Governor.
legislature
Sep 10, 2025
Lower · Passed
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1. Page 3240.).
lower
Sep 9, 2025
Introduced
In Assembly. Concurrence in Senate amendments pending.
lower
Sep 9, 2025
Upper · Passed
Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 2704.).
upper
Sep 5, 2025
Upper · Passed
Read third time and amended. Ordered to second reading.
upper
Aug 29, 2025
Upper · Passed
From committee: Do pass. (Ayes 5. Noes 0.) (August 29).
upper
Aug 18, 2025
Committee
In committee: Referred to suspense file.
upper
Jul 17, 2025
Upper · Passed
Read second time and amended. Re-referred to Com. on APPR.
upper
Jul 16, 2025
Introduced
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (July 15).
upper
Jul 7, 2025
Upper · Passed
From committee: Do pass and re-refer to Com. on E., U & C. (Ayes 10. Noes 0.) (July 7). Re-referred to Com. on E., U & C.
upper
Jun 18, 2025
Committee
Referred to Coms. on B. P. & E.D. and E., U & C.
upper
Jun 4, 2025
Lower · Passed
Read third time. Passed. Ordered to the Senate. (Ayes 72. Noes 1. Page 2061.)
lower
Jun 2, 2025
Lower · Passed
Read third time and amended. Ordered to third reading. (Page 1953.)
lower
May 23, 2025
Lower · Passed
From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
lower
May 14, 2025
Committee
In committee: Set, first hearing. Referred to APPR. suspense file.
lower
Apr 29, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 28). Re-referred to Com. on APPR.
lower
Apr 3, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 17. Noes 0.) (April 2). Re-referred to Com. on NAT. RES.
lower
Mar 26, 2025
Committee
Re-referred to Com. on U. & E.
lower
Mar 25, 2025
Introduced
From committee chair, with author's amendments: Amend, and re-refer to Com. on U. & E. Read second time and amended.
lower
Mar 13, 2025
Committee
Referred to Coms. on U. & E. and NAT. RES.
lower
Feb 22, 2025
Lower · Passed
From printer. May be heard in committee March 24.
lower
Feb 21, 2025
Introduced
Introduced. To print.
lower
1 primary · 1 co-sponsor

Sponsors